Decrypt has recently reported that crypto has reached 1.6 trillion in market capitalization with much of that value reflecting Bitcoin’s impressive run which brought it above the $52,000 mark this week.
Bitcoin’s recent performance has the attention of even the no-coiner investors — including private investing firm Motley Fool which just purchased $5 million in Bitcoin, just months after saying they would never invest in crypto. Another new entrant into the Bitcoin market is BlackRock, the largest asset manager in the world.
The reasoning is new investors are seeking a reliable safe-haven asset. Holding value is one function of a currency, though perhaps not the primary intended use of BTC according to its white paper.
It seems that Bitcoin’s gain is gold’s loss. Gold has been falling since July 2020, while Bitcoin has steadily risen, creating an all-time low in the gold-to-bitcoin ratio.
Bitcoin is unproven and lacks the long-term track record to support its usefulness as a safe haven asset. Gold has a 10,000-year history as a store of wealth, yet investors may be abandoning gold and climbing on board BTC based on the incredible run it has had since the end of 2020.
Musk has moved BTC prices noticeably this year — causing a bump in prices when he added BTC to his Twitter profile and another increase when Tesla invested $1.5 billion in Bitcoin. Yet he claims he is not an investor and doesn’t own any publicly traded stock beyond Tesla. One wonders where he stores his wealth. His tweet would suggest he isn’t keeping it in USD or any other fiat.
Perhaps his coy tone is meant to downplay any suggestion that he is impacting markets with public statements that directly impact the value of what he is investing in. After all, don’t take the advice of one of the wealthiest individuals on Earth, he is not an investor — in publicly traded stocks. Which of course, does not include Bitcoin.
Musk has also shown some love of Dogecoin, notable as the meme coin that everyone took seriously anyway. Dogecoin’s all-time high is still less than $.09, with a total supply of over 128 billion coins.
Binance founder Changpeng Zhao commented on Bloomberg Asia that he was surprised at Musk’s vocal support for Dogecoin. Zhao said in the interview:
“I’m surprised that Elon is so bg on Dogecoin. But this is the decentralized free world… He’s not really associated with Dogecoin in any way. The fact is Tesla bought Bitcoin not Dogecoin…”
Musk was not shy to respond. He asserted that Tesla’s move to invest in BTC is not reflective of Musk’s own opinion. Though, Musk’s association with the company he co-founded and leads is fairly well known.
The non-binding opinions of famous billionaires aside, Bitcoin’s performance has the crypto pundits and influencers excited
Investor and crypto influencer, Anthony Pompliano, commented in a recent video on his channel that Bitcoin is on it’s way to $100,000 this year.
“At this point, it went from 10 to 20 to 30 to 40 to 50. Guess what? It’s going… to 100. As I have been saying for two years… Bitcoin is going to hit $100,000 by end of 2021. I may be being too conservative…”, Pompliano said.
Scott Melker, “The Wolf of All Streets” concurred a recent video when he stated:
“Bitcoin has been traveling in a macro channel on a monthly chart since mid-2013… it tested the bottom of this channel in March last year in the big dip below $4,000… $100,000 is only 2x from here with Bitcoin at $50,000. We have done a 13x from that low in March in just one year…”
Twitter account Documenting Bitcoin made a sobering case to those that have held out and not invested up to this point.
Having worked with weather forecasters for many years, I know the pain of prognostication no matter how many indicators and historical precedent you cite. It’s still a guessing game — and in the case of Bitcoin, it is a game with only 12 years of precedent.
But it is hard to argue with the direction that Bitcoin has been taking.
There is more at play here than the interest of institutional investors. As we highlighted in previous articles Bitcoin’s trajectory is guided by many global economic factors, including a troubled USD, but even as the traditional markets recuperate, BTC remains strong and growing.
The average retail investor is spending more time at home since the pandemic and considerably more time at their computer. They have started to learn more and shake off the negative stigma that used to surround crypto. What comes next is guesswork with an untested model with value founded in belief, not in tangible assets as with commodities like gold.
However, the enthusiasm is there from consumers — and the long-predicted mainstreaming of crypto seems to be here.
And it seems to have earned the endorsement of U.S. actor, songwriter, and entrepreneur Lindsay Lohan, whose tweet indicates that the sky may not even be the limit on BTC.
Article originally appeared on Benzinga.