TL; DR
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We see three major catalysts on the horizon for Bitcoin (which is the tide that raises all ships/cryptocurrency prices).
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In the coming year we expect an increase in:
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Bitcoin scarcity
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Bitcoin question
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New money entering the global financial system (also called the return of liquidity)
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If these three things happen within twelve to eighteen months of each other, it could create a perfect storm of demand, scarcity and liquidity that pushes us into a record-breaking bull run.
Full story
A few days ago we were asked how/why we were still so excited about the crypto space considering the market is in the toilet.
Our answer, then and now, is: chances are we’re just blind idiots.
(Seriously, we can’t rule that out).
Beyond that, our excitement is based on the growing stream of positive news stories – like how the SEC just lost its appeal in the Ripple case, meaning it won’t be able to raise a stink about the ruling until April next year…
That, and the fact that we see three major catalysts on the horizon for Bitcoin (which is the tide that raises all ships/cryptocurrency prices).
In the coming year we expect an increase in:
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Bitcoin scarcity
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Bitcoin question
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New money entering the global financial system (also called the return of liquidity)
Here’s what that expectation is built on…
Bitcoin scarcity: The ‘halving’ will take place in April 2024. This will halve the mining rewards.
This means we go from 6.25 new BTC being created/hitting the market every 10 minutes to 3.125 BTC.
Less BTC hitting the markets = greater scarcity baaaaby!
Bitcoin question: The approval of the US Bitcoin Exchange Traded Fund (ETF).
(Also: a way to easily and legally buy/sell BTC via the stock market)
According to many in the financial sector, this is ‘a matter of when, not if’!
(Included the former head of the SEC).
This would most likely lead to unprecedented demand for Bitcoin.
Market Liquidity: The Federal Reserve has been raising rates a LOT lately. They even say they want to do one more before 2023 is over.
These interest rate increases put a lot of pressure on the global financial system, making it much more difficult for people/companies/institutions to make a profit.
Things are going to break in our financial systems…or rather: more things will start to break.
(Note: the three colossal bank failures we’ve already seen in 2023).
That means that at some point (probably soon) the Federal Reserve will have to start lowering interest rates and printing more money (aka making it much easier for everyone to borrow/spend/invest new money). ).
If these three things happen within twelve to eighteen months of each other, it could create a perfect storm of demand, scarcity and liquidity that pushes us into a record-breaking bull run.
And for us, that’s worth getting excited about!