Welcome to New Bitcoin ATHs!
(Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.)
We are officially in new territory! BTC has convincingly broken through its longstanding all time high of $69K from November 2021! Amazing to see BTC in the 70Ks — we wanted to post a quick note to say a couple things…
1 — Congrats! Many people are starting to pay attention and ask more questions about crypto and Bitcoin, and if you are reading this its likely you were ahead of the game. You recognized that having crypto exposure would be a valuable investment, and you made the right decision to get allocated ahead of the bull run that is happening before our eyes. Nice work!!
2 — We’ve been calling for higher prices since the end of 2022, and not only talking about it, but putting funds to work standing behind our thesis. Many funds and investors have been sidelined during much of last year’s move and are now scrambling to deploy and hoping for pullbacks just to keep up. Our strategy of optimizing timing on Foundational Assets (BTC and ETH) and investing in strong up-and-coming Frontier Assets has continued to deliver amazing results.
3 — We think we’re still just getting started. Yes — that may sound crazy to some, and if you’re new to crypto these kinds of gains might have you thinking it’s time to take profits and head for the hills. But now is the time to let your winners run. We won’t spend much time here on a market update but a couple of quick thoughts:
Bitcoin ETF Inflows Continue at a Staggering Pace
Net Inflows on the Bitcoin ETFs alone is currently 10x the daily supply of new Bitcoin. This only increases as the supply gets cut in half next month. All of this price action is reflexive where higher prices lead to higher demand leading to higher inflows and higher prices…
Corporate Treasuries and Sovereign Wealth Funds are Just Getting Started
MicroStrategy made $1B over the weekend buying BTC. Last cycle we saw a few corporations try to put Bitcoin on their balance sheets (looking at you paperhands Tesla), but given the risk and accounting regulations none really succeeded. With ETFs and updated FASB Accounting Standards, the path is cleared for corporates to add Bitcoin to their corporate treasuries. You can bet they’ve been watching Michael Saylor and are taking notes.
In addition, this cycle will start to see Sovereign Wealth Funds getting in on the action. In many ways, Bitcoin is still too small of an asset for some of these players, but its increasing market cap allows it to be more investable. We’ve seen many nations spinning up Bitcoin mining operations — these could be likely candidates for their sovereign wealth funds later this year as well.
We’ll wrap up here, recognizing that we haven’t mentioned anything about Ethereum ETFs, DePIN and AI Narratives, or the Solana Firedancer saga — there’s a lot going on. It’s fun to have prices soaring higher, and we’re celebrating right along with you. But also, remembering the slog through a brutal bear market to get here. We’re monitoring markets constantly so that when things do get overheated, we’re ahead of it, just like we were ahead of the markets bottoming last year.
Rudyard Kipling probably wasn’t writing about crypto market cycles when he wrote this poem, but remembering these lines keeps us grounded no matter what craziness the market brings:
If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you,
But make allowance for their doubting too;
If you can wait and not be tired by waiting…
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
As always, don’t hesitate to reach out with any questions! We’re glad you’re on this journey with us.
~ 8DC Team
