The bitcoin halving has finally happened. And things are certainly looking up in the crypto world. As I write this on Friday morning bitcoin is trading over $9,500.
Last week I told you that respected institutional investor Paul Tudor Jones announced he was bullish on bitcoin. I think that move is certainly helping price action.
Now there’s a new question we’re facing. Is Jones the first in a rush of institutional investors into BTC? I believe it’s possible.
The timing is pretty darn good. Government bonds are yielding essentially zero today. And it sure seems like there has to be a rush into alternative assets like gold and bitcoin at some point.
The big test for now is whether bitcoin can push past $10,000 and hold. If that happens, it’s pretty likely that institutions will move serious money into BTC. And then institutional fear of missing out (FOMO) could catch on.
I believe another serious stock market downturn is bitcoin’s main risk right now. A nasty downturn could cause a widespread asset liquidation like we saw in March — including crypto.
But we saw some encouraging price action on Thursday. When the stock markets pulled back, bitcoin saw a 5% up day. If bitcoin can continue bucking the trend like that, it bodes well for the overall crypto space.
There’s also some “positive” news on the stock market front. The Federal Reserve and federal government seem determined to keep stock prices elevated. They’re pumping in massive amounts of liquidity to keep the system from crashing.
This money printing spree should continue to help both stock and crypto prices. And I believe monetary madness will be an ongoing trend for years to come.