Merry Bitmas Everyone
Kevin O'Leary was on CNBC this past week and said that bitcoin is irrelevant to financial markets and too at risky for Smart Money to take it seriously. Now I like Kevin because he’s very transparent and keeps it real, but his statement is definitely “no cap” as my son would say.
There was talk about a week ago that Treasury Secretary Steven Mnuchin is proposing new rules that would require more information about the identities and the individual or entity behind those cryptocurrency transactions. The price of bitcoin paid no attention to the news. This is actually good news if we want the Smart Money to continue to warm up to bitcoin even more. One of the stipulations includes verification of identity for any transactions exceeding $3,000. That threshold is consistent with a banking regulation known as the travel rule, which requires financial institutions to share certain information when transmitting money between one another.
Bitcoin is on the verge of making another daily high on this Merry Bitmas. Price came within $300 of hitting $25,000.
The BTC all-time high (ATH) made for a nice holiday greeting. Gemini Exchange co-founder and crypto bull Cameron Winklevoss tweeted his regards after the peak hit:
Just days after hitting new ATH’s, bitcoin reached a new peak on Dec. 25. While not the $25,000 present some were asking for under their tree on Christmas Day, the $24,600 handle at least probably puts that figure psychologically in reach.
The ATH news comes after Glassdoor published a tweet indicating just how broad-based bitcoin is now. According to its chart, there are over 800,000 wallets with a bitcoin holding of over 1.0 BTC as of Christmas Eve.
It feels like just yesterday we were talking about the price of Bitcoin retesting the all-time high set in 2017. That event came and went and now we are now talking about Bitcoin at $30,000. And I feel that in the 1st half of 2021, we will be discuss Bitcoin $50k. In my eyes $50k is easily attainable as it only represents 10% of the gold market cap. But lets not even think in terms of market cap, the Smart Money continues to buy Bitcoin off the exchanges. Guggenheim Partners Chief Investment Officer Scott Minerd said Bitcoin is worth $400,000. And just recently Guggenheim filed to reserve the right for 10% of its $5.3 billion Macro Opportunities Fund to invest in the Grayscale Bitcoin Trust as it's the quickest way for these fund managers to participate and get exposure to Bitcoin now vs. later.
So Merry Bitmas and to all a good night as $25,000 is in target and will be eclipsed before the end of 2020 is over.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advice. Do your own research before making investment decisions.
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