Bitcoin opens the way to $100,000 thanks to the red wave and the presence of many bitcoiners in the next United States government.
Bitcoin Strategic Reserve
The next United States government will include 12 people who have publicly endorsed Bitcoin. Among them, at least eight hold them personally. The tide has definitely turned.
“We are going to make a series of highs over the next two quarters. Everything has changed at the government level. Look at this pro-bitcoin cabinet: the president, the vice president, the attorney general, the secretary of defense, the national security advisor, maybe even the secretary of the Treasury”said director at Vaneck Matthew Siegel on CNBC.
The appointment of Robert Kennedy as head of the health department also bodes very well. The latter had pleaded during the Bitcoin conference in Nashville for the creation of a BTC reserve equivalent to all the gold in Fort Knox (i.e. ~ $650 billion)…
The prospect of a strategic bitcoin reserve is real. Bitcoin could soar towards $500,000 if Senator Cynthia Lummis manages to persuade the Senate to buy a million BTC. The future, however, is less bright for the barbarian relic. The senator is in fact of the opinion to exchange the gold of Fort Knox for bitcoins.
Here is Michael Saylor's opinion on the likelihood that the United States will have a BTC reserve:
“The United States was created by purchasing Manhattan, the Louisiana Territory, California, Texas, and Alaska. […] Creating a strategic bitcoin reserve is a great idea and I think it will come to fruition. This would give the United States control over the future international network and reserve. According to my models, Senator Cynthia Lummis' plan could wipe out the equivalent of $16 trillion in debt. »
The rush of institutional investors
The political endorsement of bitcoin causes a rush of institutional investors. This is what the latest quarterly report reveals “13F” that funds managing more than $100 million are required to file with the SEC.
This report must be submitted within 45 days following the end of each quarter. This delay makes it somewhat outdated at the time of publication, but it is still very informative.
There are big names in finance like Bank of America, Cantor Fitzgerald, Citadel, Royal Bank of Canada, Goldman Sachs, Morgan Stanley, UBS, HSBC, Macquarie Bank, etc. Please note that investments in bitcoin can be made personally or on behalf of clients. Report 13F does not make a distinction.
In any case, Goldman Sachs, for example, doubled the stake compared to the previous quarter. She holds more than $710 million worth of bitcoin. This is three times more than Morgan Stanley, which was the first bank to let its 15,000 financial advisors offer bitcoin to their wealthy clients.
Until now, wealth advisors only acted at the express request of their clients. But things have changed since the election of Donald Trump. Giant fund Berstein now openly advises investing “as quickly as possible”.
Berstein ($725 billion in management), predicts that bitcoin will reach $200,000 in 2025. Same thing for Vaneck who is counting on $180,000.
The following chart shows how quickly the Bitcoin ETF (from BlackRock) was able to reach $40 billion:
The Bitcoin Strategy
Bitcoin is a technological breakthrough. For the first time, a liquid asset exists in absolutely finite quantity. There will be no more than 21 million and only 1.2 million BTC remain to be mined. The world is slowly waking up to the existence of such an asset never seen before.
Things are also very interesting on the demand side. Microstrategy will soon raise $42 billion to acquire more bitcoins. This amounts to buying all of the BTC that will be mined over the next three years (at $85,000 each).
All institutions will eventually place their cash in bitcoin. The latest to adopt this strategy is Genius Group. The value of its stock soared by 20% just after announcing the conversion of 90% of its cash into bitcoins.
We also learned this week that the US state legislature of Pennsylvania will soon vote on a strategic bitcoin reserve. It is proposed to invest up to 10% state funds.
“The Bitcoin Strategic Reserve Act aims to protect the future of our state’s finances”said Mike Cabell, Republican state representative and author of the bill.
Pennsylvania could become the first American state to take the plunge. That said, the states of Michigan and Wisconsin have already invested in bitcoin through their public pension funds.
The icing on the cake is that Microsoft ($75 billion in cash) could join the fray. Shareholders have until December 11 to vote in favor or against a bitcoin strategy. The risk for multinationals is that their shares will be sold for the benefit of Bitcoin. CFOs and treasurers are realizing this…
The dominoes are falling one after the other and it is difficult to see how bitcoin could not touch $100,000 before the end of the year.
Article : “Soon a Russian strategic bitcoin reserve? »
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