Current Price $5250. DJI is under 19,000 as I write. Bitcoin has fallen over 50% in recent weeks largely due to over-leveraged positions being liquidated on popular derivative platform BitMex. The case for Bitcoin has never been better, thanks to yet another round of stimulus packages and bailouts. In a time where the government is taking every measure to prop up the economy, Bitcoin is the freest market in the world, trading 24/7 with no intervention. A capped supply of 21,000,000 BTC hardcoded into the network insures that the currency will never be inflated away. Block reward halvings (another is on track for May) further reduce new supply. Being long Bitcoin is a hedge against an economic model that could be breaking.
Credit Suisse had this to say this morning:
I continue to believe that this is the most undervalued and best investment opportunity open to the public due to its asymmetric risk-reward. It’s even more appealing to me now as an investment than it was when I made my first purchase in 2017. I felt “late” buying in 2017, but now I believe it is still early and the recent price decline offers a great buying opportunity.
While BTC is currently acting as a risk off asset/high beta SPX play, there will soon be a decoupling and BTC will make new highs, which from the current price, would be at approximately a 400% return in USD.
Prediction: BTC hits at least $14,000 USD (260% ROI from today) before the DJI returns to new highs.
theDCal 