Monday, December 28, 2020

Bitcoins - Why the macro uptrend has just begun.

Bitcoin’s break out to a new all-time high 25150 at the time of writing, the debasement of fiat currencies has resulted in Bitcoin becoming an increasingly viable “store of value” for the many institutions.

Microstrategy CEO Michael Saylor has bought $650 million worth of Bitcoin since December 11.

Big institutions who want to hedge against the debasement of fiat currencies are investing in BTC. This is particularly the case since custodian arrangements are now in place for owning Bitcoin offered by the likes of Fidelity.

In this respect, it is worth considering the numbers. The total market capitalisation of Bitcoin is now US$427bn which compares with the US$659bn market capitalisation of Tesla last Friday.

In America, Massachusetts Mutual Life Insurance Company announced on 10 December that it has invested 0.04% of its general investment fund, or US$100m, into Bitcoin. While in Britain, Ruffer Investment, a wealth manager, announced last week that it allocated 2.5%, or roughly US$15m, of its US$620m multi-strategies fund to Bitcoin in November. 

The latter investment in BTC is is interesting since has long being a conservative fund with emphasis on capital preservation.

Bitcoin is the only technology in our lifetime that enters the hypergrowth phase meeting up with shrinking supply.

Bitcoin (BTC)

All posts and charts are for educational and illustration purposes only

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