Early Investing

Bitcoin: This Bull Run Is Going to be Epic

Bitcoin: This Bull Run Is Going to be Epic
By Adam Sharp
Date November 20, 2020

The crypto bull market is heating up. Bitcoin is leading the way — it reached more than $18,000 this week. That’s approaching the all-time high of nearly $20,000.

The last time bitcoin was near this price was December of 2017. Bitcoin’s price had risen from $434 on January 1st 2016, to a peak of almost $20k in December of ‘17. It hasn’t really come close to that level since.

This is what bitcoin has done since 2009. It breaks out to a crazy new price, goes down, consolidates… then goes on another run to greater highs in a few years. But that cycle of rise, fall, consolidate has been part of why many investors dismissed it as too volatile — until this year.

2017 was bitcoin’s introduction to the broader investment world. Now everyone is getting comfortable with it. And all the necessary infrastructure to support big buyers is in place now. Fidelity and other huge players have serious operations ready to handle institutional money.

For this reason — and others discussed below — I think we’re going to see radical new highs for bitcoin in the next six months.

Ridiculously Bullish Environment

Right now we’ve got the most bullish environment for bitcoin I’ve ever seen. We have institutional investors gobbling up bitcoin, as I detailed in “Bitcoin is Looking Better Than Ever” on Oct 16th. 

These institutional investors are far more likely to buy and hold crypto long term. This is very different from the retail traders who were driving the bull market back in 2017. Retail traders are often willing to buy quick and sell quick — driving market instability. Having these institutional investors involved brings bitcoin newfound stability.

This time we’re seeing big money get involved. And if everybody decides they want a tiny slice of bitcoin in their portfolio, there’s going to be overwhelming demand. And that leads me to one of the most interesting — and underappreciated — factors at play. For a long time, bitcoin was too small for big players to even get involved. They would have moved the price too much (some still would). But as price and liquidity rise, it actually makes it possible for more institutions to get involved. Which then drives up the price again. It’s a virtuous cycle that bodes very well for bitcoin.

On top of the incredibly bullish institutional developments, we also have some great fundamental factors working for us.

  • The Federal Reserve running the printing machines at a fevered pace
  • Savings accounts yielding nothing
  • $17 trillion of government bonds with negative yields
  • An increasingly digital economy

Bitcoin has a LOT going for it right now. This is going to be a powerful adoption cycle. Every cycle creates more long-term adopters, which is what truly supports the price of bitcoin. 

I think this cycle is going to be epic. And I think a lot of these new buyers are going to hold on for the long run. 

We’ve been patient during the bear market, and there’s a very good chance we’re about to be rewarded.

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