Bitcoin is due for a dip, but I think new highs will follow shortly

Bitcoin has already fallen by about 17% from the highs to the lows this morning, something that may sound like a large dip, but by comparison to the last bull market, doesn't even make the top 10 largest dips.

During the 2017 bull market, bitcoin had 8 dips of 24% or more.

I fully expect we will see a couple of those types of dips this time around as well, but I think they will be fewer and further in between.

The reason I think that is all because of institutions.

Mike Novogratz recently did an interview of his thoughts on bitcoin and crypto and where he sees things going.

His thoughts are eerily similar to my own and he is a guy that is worked in and with Wall Street for decades.

Here's the interview:

My favorite quotes...

In case you don't have time, or want to watch all of it, here's some of the more notable quotes:

"There’s scores of insurance companies. They’re all going to come. We’ve got a couple big asset managers only. One guy bought $600 million yesterday. I was talking to him. He’s like, ‘Well how far are we ahead or behind?’ I was like, ‘You’re on first base in the first inning.’

So we’re going to see these movements in these institutional buckets over the next couple years. I think $50,000 this year may be easy and $100,000 or $150,000 the next. That’s just as the money moves in.”

There’s also a giant wealth transfer coming. The baby boomers are going to die and they’re going to finally give the money back to millennials and Gen Z. Millennials and Gen Z, 50% of people your age meet their significant other online. 50% of marriages today are started online. My age – zero…

Why older people have a harder time with crypto? Why they need to buy their Bitcoin through funds or through brokerages instead of just going on and getting the Square app and buying their Bitcoin. So they’re coming to buy it now, but as they transfer their money to a generation who’s going to be much more comfortable with crypto and digital stuff, then you’re really going to see total adoption.”

We’re now 3% of gold. That was a target. My next target was 10% of gold. But if you think about the way the world works, as we get to 10% of gold, people are going to think, why are we only 10% or gold? We should be 20% of gold. We should be 50% of gold. We should be the same as gold. We should be more than gold.”

I agree with just about all of this.

Either bitcoin is going to zero, or it's going north of $100k, there likely isn't much middle ground.

Based on everything going on, I am heavily betting on the latter.

Stay informed my friends.

-Doc

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