Bitcoin has been beating altcoins over the last few weeks — which is something we haven’t seen in a long time. And I think this trend may continue for a while. We could even get a situation where bitcoin “sucks all the air out of the room,” which we also haven’t seen for a while.
High flyers like Avalanche (AVAX) — which has had an absolute monster year — are understandably experiencing a minor correction, while bitcoin has moved higher.
There are a lot of events that are fueling this bitcoin bull run. News that George Soros’ primary fund has taken a position in bitcoin is one catalyst that has helped. Another is the rumor that we’re finally going to get a bitcoin ETF (although it may be futures-based, not backed by actual bitcoin). And all the investment banks that recently started offering bitcoin — including Wells Fargo, Morgan Stanley and U.S. Bank — haven’t hurt.
But I think what’s really driving all this institutional adoption is inflation, government spending and the growing debt pile. And let’s just say I think these trends aren’t going away anytime soon.
So I’m very, very bullish on bitcoin. Select altcoins like Solana (SOL), FTX (FTT) and Avalanche are on my radar. But I can’t bring myself to pull the trigger with their prices still up such an incredible amount over the last year.
Bitcoin still offers the best risk/reward ratio. Altcoins offer the potential for larger gains, but they have a lot more downside. I think bitcoin is headed to new all-time highs this year — and maybe $200,000 in 2022. If that happens, it’ll be more than enough for me.