Bitcoin Hits New $85K High. Why $115K Could Be Next
Bitcoin continues to notch new all-time highs. Here's why that trend will continue
Well, that was fast! Bitcoin and the rest of crypto continues to rally after last week’s election results and Fed rate cut. This week, we expect much of the same as the analyst who nailed last year’s price call (Fundstrat’s Sean Farrell) continues to tell us he’s confident in his $115,000 year-end price target.
“I’m as cool as a cucumber,” he tells me. Let’s dig into why…
Bitcoin ETFs Attract $2 Billion (Again)
I know this sounds like a broken record at this point, but the amount of money Bitcoin ETFs have attracted has been historic. It’s worth reiterating that it took Gold ETFs five years to attract more than $20 billion. It took Bitcoin ETFs 10 months to do that, and current inflows are now running at about $2 billion a week.
Now, it’s completely possible that those inflows could swing to outflows fairly quickly if the market turns, but historic up cycles like this are not to be faded. Bernstein analysts on Monday pleaded with investors to “buy everything” related to the surge. As FOMO-y as that sounds, there’s good reason to heed the call.
Top Crypto Analyst Quadruples Down on $115K Bitcoin Call
I say it’d be wise to heed the “buy everything” call not because I believe the FOMO, but because I believe Fundstrat’s Sean Farrell. He nailed Bitcoin’s price last year and he’s predicted Bitcoin will hit $115K before the end of the year. Thrice I’ve offered him the change to change his mind live on air and thrice he has declined.
Last week, he quadrupled down saying he’s “cool as a cucumber” with just about 45 days left to go in 2024. But considering even stocks like Coinbase are up 75% in a couple of weeks, another 30% move higher for Bitcoin hardly seems difficult to believe. Watch our full interview with Sean Farrell here:
MicroStrategy Buys Another $2 Billion of Bitcoin
In prior cycles, the narrative was always that booms in crypto were driven by retail buying. This cycle was always meant to be more led by institutions, corporations, and sovereign funds. Arguably, we still have a ways to go for the latter. But institutions and corporate buying should accelerate quickly in this next phase.
Reason being: The torchbearer for leveraging a company’s existing operations to issue debt and sell new shares to plow into buying more Bitcoin continues to print cash.
Michael Saylor’s MicroStrategy revealed Monday it bought another $2 billion worth of Bitcoin at an average price of $74,463 apiece. The latest acquisition of 27,200 Bitcoin has already banked over $200 million in profit. MicroStrategy’s stock is now up 372% on the year.
In theory, that kind of outperformance should entice other companies to scoop up bitcoin using the same playbook. The only question becomes how over-leveraged MicroStrategy might be if the winds should turn. They haven’t had any trouble raising money or issuing debt given they are now sitting on $12 billion in paper profits.
What to Buy Beyond Bitcoin?
There are a few projects that are showing strength farther beyond Bitcoin on the risk curve. Solana, Ethereum, and Sui have all performed well after the election — and looking back at our Crypto Project of the Year celebration from last year, you’d be up 642% if you bought Sui at the time we named it to our list of projects to watch this year.
Fret not, though, we’ll be running back our Crypto Project of the Year celebration with new updates on which projects to watch later this month. Get ready to fill out a bracket again to predict the winner — coming later this week.
Today’s Dose of WTF:
There’s a trend in the memecoin space to launch coins that are named after characters that are characterized as sentient beings. As we all know, AI isn’t quite there yet — but as the memecoin GOAT showed by surging to a $700 million marketcap, the human imagination around that narrative is powerful. That’s why it’s even more hilarious/interesting/terrifying to see a group launch a AI-based memecoin around Terra’s founder Do Kwon reborn again as a female named Do Qween.
Right now, $KWEEN is at a $6 million marketcap. We’ll keep tabs on where things go from here. The Peanut The Squirrel memecoin we mentioned in our newsletter last week is up 8X. You are welcome.
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