Bitcoin is at a hair of its historic highest. The volumes on the ETFs, the brick sling and the audacity of the United States are very good omen for the future.
In short
- Institutional rush: Blackrock ETF Bitcoin crossed the 700,000 BTC mark ($ 76 billion) in 18 months.
- Standard Chartered, Bernstein and Bitwise target $ 200,000 before the end of the year.
- Trump Media & Technology Group acquired $ 2.5 billion in BTC. Senator Lummis offers to sell gold to buy 1 million BTC.
- The BRICS grow for an alternative international currency to the dollar. Bitcoin is the ideal candidate.
Institutional rush on bitcoin
The break of $ 110,000 seems imminent. And in view of the sluggishness of on-chain volumes, it is always the institutions who lead the charge.
While the blocks are half empty of transactions, the Bitcoin ETF grow in sight. ETF Ishares Bitcoin Trust (IBIT) of BlackRock has just crossed the 700,000 BTC mark. Or more than $ 76 billion accumulated since its launch in January 2024. Or 55 % of all BTCs held via American ETF.
With $ 187.2 million in annual income, Ibit is the third most profitable ETF among the approximately 1,200 ETFs that Blackrock offers. It even reports more than ETF backed by S&P 500 ($ 187.1 million).
As a reminder, Ibit crossed the 40 billion dollars mark in assets under management in just 211 days, spraying the previous record held by the ETF MSCI Emerging Markets (1 253 days). It is already placed in the top 1 % of ETFs in terms of assets.
In other words, Bitcoin is exploding and many investment companies target 200,000 dollars before the end of the year. This is the case of standard charter, Bernstein and Bitwise. Vaneck and Galaxy Digital expect $ 180,000.
Others like Fundstrat Global Advisors are even more optimistic. The New York fund aims at $ 250,000 if the US government is taking action by strengthening its Bitcoin Strategic Reserve.
Eyes riveted to Washington
The pressure that accumulates under $ 110,000 suggests that investors expect concrete actions from the United States government. Everyone has their finger on the trigger.
According to Crypto in America, the White House will publish a report on the issue on July 22. The markets expect strong announcements. Or not. Perhaps it will be necessary to wait for the vote of “Bitcoin Act”. Senator Cynthia Lummis offers to sell gold to add a million bitcoins.
However, there is something to be enthusiastic when you know that Trump Media & Technology Group (TMTG), the mother company of Truth Social, in which President Donald Trump holds a majority participation, bought for $ 2.5 billion in Bitcoins …
Bo hines statements are also encouraging. The White House advisor said“It is in the interest of the American government to accumulate as much bitcoins as possible”rejecting any quantified limit.
Even the American generals, in particular in Southeast Asia, support the strategic accumulation of bitcoins by anticipation of a “Economic war with China”. Vice-president JD Vance (who personally has bitcoins) considers that “The Bitcoins Strategic Reserve strengthens the economic sovereignty of the United States”.
The United States has understood that it is in its interest to get their hands on Bitcoins before it was a credible alternative to the dollar. In this regard, Donald Trump recently warned the Brics:
The BRICS were created to weaken the dollar and withdraw its status as a global reserve currency. And it's Okay if they want to play their game, but I can also play this game. So all the member countries of the BRICS will be imposed a customs tax of 10 %.
Donald Trump
Bitcoin, at the heart of geopolitics
THE Brazilian president said at the BRICS summit that “The discussion around a new international payment currency is extremely important”. “I know it's complicated”, he conceded while warning “Humanity” against a failure.
The Russian president reiterated his calls to dedollarize him by establishing an “independent international regulations system” as well as promoting national currencies.
However, Russia itself refuses to accumulate too many Indian rupees. India does not produce enough things that interest the Russians. Quite the opposite of China with which exchanges are 95 % in ruble as well as in Yuan. In other words, the BRICS need a stateless currency, not censurable and designed to keep its value.
The obvious pretender is Bitcoin. You would have to be blind so as not to see it. The United States has understood this and intend to protect its rear. Especially since the dollar is already under high pressure. The following graph shows that the greenback is in free fall in the exchange reserves:
The dollar share is now less than 50 %. This tumble is largely linked to gold purchases of Russian and Chinese central banks, among others.
This is a problem for the United States that has an irrelevable debt of $ 7,000 billion towards the rest of the world. Allowing them to accumulate bitcoins before everyone else could offer them an opportunity to mop this debt and facilitate a smooth transition towards the end of American monetary hegemony.
Let's finish by sliding that the global exchange reserves represent the equivalent of more than 12,750 billion dollars, enough to seict the value of Bitcoin…
Don't miss our article: “The crypto died in 2021”.
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