Bitcoin — Bullish Catalysts of 2020

Multiple catalysts have occurred in 2020 that point to why this Bitcoin cycle is inherently unique #Phase5

Bitcoin Price: $19,372 (11/30/2020)

Investors around the world are quickly waking up to the bullish macro narrative for Bitcoin, with global buying demand vastly outpacing new supply on a daily basis. Currently, PayPal and Square’s CashApp alone are buying up more than 100% of daily new supply (current block rewards points to ~900 new BTC entering the money supply each day). Not to mention the rapidly growing Grayscale Bitcoin Trust ($GBTC) which has been an increasingly popular vehicle for institutions to invest through — on track to be accumulating more than 1,000 BTC per DAY as of last week.

Just these three entities only are buying up the entire new daily supply…and we are just getting started.

What is even more interesting is that as global demand ramps up, the amount of coins held on exchanges is quickly diminishing even as the price increases, the exact opposite of what happened during the historic bull run of 2017. This signals a new price floor has emerged, with the order book becoming increasingly scarce as we approach new all time highs. Increased volatility to the up (and down) side is likely imminent as minimal float on exchanges drives price discovery.

Here is a short list of further bullish catalysts for Bitcoin in today’s macro environment:

• Performance is rapidly decoupling from gold

• Trillions of money printed by central banks around the world has caused rampant inflation fears as investors contemplate where to allocate their money

• Global negative yielding debt reached a new record over $17tn

• The OOC has given all nationally charted banks the greenlight to offer custody services for digital assets (prime brokering at major banks are inevitably next)
• Kraken Exchange and Avanti Financial Group have both been given official banking charters in the state of Wyoming in the form of a special-purpose depository institutions (SPDI) charter

• MicroStrategy became the first public company to adopt a Bitcoin standard in their corporate treasury strategy, purchasing 38,250 BTC for $425mm.

• Square, a $96bn market cap payment company and parent of CashApp, announced they would be investing $50mm of their balance sheet into Bitcoin

• For a comprehensive list of companies holding Bitcoin on their balance sheet, use this tracker here developed by @NVK of Coinkite.
• Prominent investors including Paul Tudor Jones, Stanley Druckenmiller, Bill Miller and BlackRock CIO of Fixed Income, Rick Rieder, are all publicly bullish on Bitcoin

• SkyBridge Capital (a ~$9bn global hedge fund of fund) and Guggenheim Partners ($270bn asset management firm) recently updated their investment mandates to allow them to invest in Bitcoin

• Alliance Bernstein, a $630bn global investment management firm, is now recommending an allocation to Bitcoin in a portfolio.

• Traditional power companies including Equinor and Greenidge Generation have implemented Bitcoin mining into their day to day operations. This to me represents one of the most exciting and growing aspects of the Bitcoin economy.

The Bitcoin conversation is happening around the world, from the dinner table to the highest levels of government and board rooms of billion dollar companies. The question is, are you listening?

#HODL