This Is Why I'm So Bullish On Bitcoin...The Goal To One Bitcoin
Several months ago, Billionaire hedge fund manager Paul Tudor Jones said he was buying bitcoin because Paul believes bitcoin will serve as a hedge against a jump in inflation due to central banks printing money around the world. Paul has been a successful trader for decades and said bitcoin reminds him of the role gold played in the 1970s.
Mike Novogratz is a former Goldman Sachs partner and now represents Wall Street's transformation to Crypto. He is now CEO of Galaxy Digital CEO Michael Novogratz and said with the U.S. Federal Reserve continuing to print money like it grows on trees, along with other central banks around the world, things could get really bullish for Bitcoin.
Two months ago Mike said he thought that Bitcoin could mirror gold as well. Mike’s latest interview was today on CNBC. He reiterated this thesis to go long Bitcoin and how Bitcoin could move in sync with gold. Mike said he has a big position in bitcoin and thought the times we are in now are great for going long bitcoin and gold.
According to Coin Metrics data, the 60-day correlation between the two assets is hovering at record highs above 0.5. The positive correlation has only gotten stronger since the beginning of July due to the U.S. dollar declining against other major currencies.
Earlier this week, Stan Druckenmiller made headlines by implying the same thing Paul stated months ago. A former chief strategist for billionaire philanthropist George Soros, who became one of the most famous currency traders in the world based on his bet against the Bank of England in 1992 on what became known as Black Wednesday, where he made over $1 billion on the trade. Thus, Stan knows what he’s talking about.
The markets are in a “raging mania” and rising inflation is a big threat, investor Stan Druckenmiller said.
Inflation could hit 5% to 10% in the next four to five years, Druckenmiller said Wednesday in a CNBC interview, adding that the Federal Reserve has created conditions that have sent valuations soaring. Deflation is also a risk, he said.
“Everyone loves a party but inevitably after a big party there is a hangover,” he said. “We are in a raging mania.”
Two years ago, when Bitcoin fell below $6k, CNBC’s Jim Cramer said he thought the tide had turned against Bitcoin and that the sun seems to be setting on Bitcoin. But maybe Bitcoin is seeing a new dawn.
Based on my recent assessment of the equity markets, I'm starting to turn more and more of my attention to crypto will probably move some fiat to get me closer to my one Bitcoin goal. Hey, I even bought my first crypto hard wallet last night as this might be my last time to get Bitcoin near $10k.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance
