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$50K BTC in 2021? Bloomberg Analysts Join the 'Traditional Onslaught' Driving Bitcoin's Rally

by Nathaniel Whittemore
December 5th 2020
00:09:36
Description

On this edition of the weekly recap, NLW looks at the consolidating narrative of a bitcoin rally that is:

331 Welcome back to the Breakdown with Me and L. W. It's a daily podcast on macro Bitcoin and the big picture Power shifts remaking Our World. The Breakdown is sponsored by crypto dot com Next Addario and all nodes and produced and distributed by Coindesk. What's Going On, Guys? It is Saturday, December 5th, and that means it's time for the weekly recap. So Bitcoin Years plus 2020 years combined means that it feels like about 100 years since Bitcoin punched above all time highs at the beginning of the week. Then again, this could also be because the rial psychological barrier is 20,000, no matter what the technical number is, it could also be because frankly, after waiting for three years, ah, whole lot of folks out there want to see more than just a touch up to previous highs. They want to see a smash toe, a whole new dimension

. Whatever the case, however, one thing that is clear is that there has been a consolidating narrative around this rally, and that narrative is that this time isn't being driven by wonky retail speculators. Instead, the new market participants are US institutions and the narrative For those institutions, the raison debt for them to be involved focuses on limited supply in the face of unlimited printing. To get a sense of just how clear this is. Reuters yesterday published a piece called How American Investors Are Gobbling Up a Booming Bitcoin. Bitcoin has grabbed headlines this week with its dizzying ascent to an all time high. Yet under the radar, a trend has been playing out That could change the face of the Cryptocurrency market, a massive flow of coin to North America from East Asia. It is North American investors who have been the bigger winners in the 165% rally this year. Weekly net inflows of Bitcoin, a proxy for new buyers to platforms serving mostly North American

users, have jumped over 7000 times this year, toe over 216,000 Bitcoin, where 3.4 billion in mid November data compiled for Reuters shows East Asian exchanges have lost out. Those serving investors in the region bled 240,000 Bitcoin, where 3.8 billion last month. Now another part of this article also made an interesting mention. They talked about the impact of the Office of the Comptroller of the Currency, saying over the summer that national banks could provide custody services. This is something that I've seen mentioned numerous times, although always below the radar. We've also heard it directly on this show from people like Robbie Gutman at NYU Dig, who said that this made a major impact in allowing US investors to get comfortable finally taking the plunge. Now, another piece of data validating this notion that U. S institutions have been the driver comes from coin metrics, who published a remarkable graphic showing Bitcoin Price movement in November with huge

concentration. Price rises occurred during US business hours and stayed flat outside of them. This episode is brought to you by crypto dot com, the crypto super app that lets you buy, earn and spend crypto all in one place and earn up to 8.5% per year on your Bitcoin. Download the crypto dot com app now to see the interest rates you could be earning on BTC and more than 20 other coins. Once in the APP, you can apply for the crypto dot com metal card, which pays you up to 8% cash back instantly on all purchases. Reserve yours in the crypto com app today. Many investors want to be a part of the next bull run. Others seek to build their dream home, finally launched that startup or fund their education. Try next US instant crypto credit lines and borrow against any major Cryptocurrency with no minimum or maximum withdrawal amounts, no fees whatsoever, no credit checks and flexible repayment, not to mention the A. P R starts at just 5.9%. Stay on top of your investment game

with neck so dot io And remember, it's your crypto your credit, your choice. Get started at neck, so dot io Hey, guys, this week we've got a special product launch sponsor looking for the best way to stake Ethereum two point safely and affordably Goto all nudes dot com the number one enterprise grade hosting and staking platform type in promo code Coindesk three. And enjoy three months of free hosting for your validator notes. The platform is easy to use. Comes with instant node monitoring and multi level protection for your validator keys. Five minutes is all it takes to get started. Staking on all nodes dot com, the platform preferred by people who make a difference. So visit all nodes dot com and use the promo code Coindesk three to get started for free today. Let's go back to November because this is a month that we're going to be talking about for some time. Travis Cling is calling the shift to institutional investors three traditional

on slot and highlighted some of the biggest things that happened in the month. And this is so remarkable. I'm just going to read through this November highlights. Stanley Druckenmiller announces Bitcoin position. Druckenmiller is, of course, one of the most famous money allocators of all time. He worked for Soros. He's a billionaire in his own right and is just hugely influential. Bill Miller, another classic value investor, strongly recommended Bitcoin on cable news. Citigroup research publishes Year and 2021 Bitcoin price target as high as 318,000. We did a whole episode on that. I'm sure you remember BlackRock Fixed Income CEO Rick Rieder says Bitcoin could replace gold. That was followed by the way, with the CEO of BlackRock, Larry Fink talking about why Bitcoin had proven itself Guggenheim, the huge global multi $100 million asset manager filing to buy up to a 10% Bitcoin position through G B T. C in their 5.3

billion macro fund. And then, of course, there's Alliance Bernstein, who is a 631 plus billion dollar asset manager. They reversed their position, held since January 2018, and recommended an allocation to crypto. We read that on Tuesday. Skybridge The Fund of Anthony Scaramucci files an SEC amendment to invest in Bitcoin with their $3.6 billion fund. Keep in mind, we're still in November here, folks. Ray Dalio, on Twitter after saying that he still wasn't really into Bitcoin admitted that he might be missing something. Those were his words, Neil Ferguson writes. A Bloomberg opinion piece called Bitcoin is winning the cove in 19 monetary revolution. By the way, preview Spoiler alert That's coming to you tomorrow on long. Read Sunday. And then there's the other things that aren't just strictly speaking institutional investors but are still huge. Square reported Q three Bitcoin revenue and gross profit up 11 x and 50 next year over year. Wyoming

elects easily the most pro Bitcoin advocate in the Senate, Cynthia Loomis. She has held since something like $300 per Bitcoin. She has a clear vision of why sound money is important. Huge, right? There is so much that happened just over the last month. And it's not just an influx of Robin Hood traders or a repositioning of people in the space. There is something big and fundamental and different happening here. And just to cap it off. Bloomberg just came out with a new report there. Bloomberg Crypto Outlook. It's called Bitcoin, joining the 60 40 mix, and their highlights are huge. 10,000 is 2021 Bitcoin based firm or of the same towards 50,000 Bitcoin in crypto asset demand. Momentum favorable Nearing 2021. Bitcoin gaining key. 2021. Edge volatility at new lows versus NASDAQ Golden Bitcoin Fundamentally technically sound bull markets

. Bitcoin sellers No thanks with Hodler's as entrenched as 2010. So the big one, obviously that people are talking about, is that price prediction towards 50,000. But as you can see, it's driven by this huge combination of factors together. The point of this, I think, is that regardless of what you're seeing with that number were flirting. So hardware clinging to 19,000 looking up a 20,000 now some, like Raoul Paul, have said that we may be looking at a technical correction coming right down the pipe. But either way, I think that it's impossible to see where we are as anything other than hugely bullish with new, fundamental underlying strength, with a different category of investor driving things. On the one hand, this group of investors might be more fickle. You're never going to get Hodler's to part with their money where these are institutions that at certain times if certain things happened, if we saw another deep market turnaround, if we saw another liquidity crunch, they might have to liquidate their positions in a very systematic and aggressive way

. The flip side is there playing at such a larger scale that in the short term they're likely to dampen volatility. I think because they're just not going to stress is much about the difference between 19 and 18 k as the retail guys out there playing with leverage. Whatever the case, it's been a crazy month and a crazy first week in December, I can't even wait to see what the rest of this month holds. I appreciate you hanging out and listening to the show along the way and until tomorrow, guys be safe and take care of each other piece.

$50K BTC in 2021? Bloomberg Analysts Join the 'Traditional Onslaught' Driving Bitcoin's Rally
$50K BTC in 2021? Bloomberg Analysts Join the 'Traditional Onslaught' Driving Bitcoin's Rally
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