Colin’s Note: The year ahead promises to be a big one for bitcoin.
That’s according to colleague Teeka Tiwari. He’s the crypto expert who originally recommended bitcoin and Ethereum in 2016…
As I write, they’re up 11,218% and 24,502% since then. So it pays to listen when Teeka makes a call.
He’s had his eye on a project that’s about to send folks flocking to bitcoin. And as the bellwether for the crypto market, where bitcoin goes, the altcoins follow.
See, whenever the bitcoin price spikes, it has a “slingshot” effect on the smaller altcoins… Which means potentially life-changing gains on small stakes… If you know where to look.
Teeka’s put together a briefing to guide you that you can access right here. Then read on below for the three catalysts Teeka says will send crypto soaring in 2024…
Friends, I’ve never been more excited about crypto than I am right now…
As we exit 2023, I see three major catalysts that will propel bitcoin to new all-time highs.
The first catalyst is the imminent approval of a spot bitcoin exchange-traded fund (ETF).
Currently, the U.S. Securities and Exchange Commission (SEC) is reviewing 13 spot bitcoin ETF applications. The next deadline for the commission to decide on a spot bitcoin ETF is January 10.
On that date, the SEC must approve or deny spot bitcoin ETF applications from Franklin Templeton and Hashdex.
Hashdex is a relative newcomer in the bitcoin ETF game. It’s a small crypto asset manager with about $435 million in assets under management.
Franklin Templeton, on the other hand, is a major Wall Street player. It manages over $1.45 trillion in assets.
I can’t say 100% for sure the SEC will approve those two applications before the January deadline… But I wouldn’t bet against it.
If compelled to gaze into my crystal ball, I’d say there’s a very good chance the SEC could approve multiple ETFs by as early as January 10 (more on that in a moment).
Bitcoin’s recent monster 50% rally shows the market agrees with me and is betting on imminent approval.
According to ETF analysts from Bloomberg, there’s a 90% chance of spot ETF approval by January 10.
Here’s the thing…
I believe it’s unlikely the SEC will approve just one of the 13 spot ETF applications it’s currently reviewing. That will give the approved ETF a first-mover advantage.
It’s more likely the SEC will approve multiple ETFs at once.
That means we’d have several crypto products from heavyweights like BlackRock, Fidelity, WisdomTree, and Grayscale come to market at the same time.
Combined, these 13 firms have $17 trillion under management.
Once the SEC approves a spot bitcoin ETF – and that could come any day now – millions of investors will be able to own bitcoin without the headaches that come with it.
They won’t have to worry about how they’re going to securely hold the asset… or about the fear of losing their nest egg if they accidentally send it to the wrong address.
Blockchain data firm Glassnode estimates that up to $70 billion in new capital could flow into bitcoin after the approval of a spot bitcoin ETF.
Let me put that number in perspective for you…
Right now, 900 new bitcoins are mined each day. At $41,400 per bitcoin, that comes to $37.3 million in new supply each day. So that $70 billion in new buying is the equivalent of 5.15 years of all new bitcoin issuance.
With the bitcoin halving coming up in April 2024, issuance gets cut in half to 450 new coins per day. That will then push the demand side to 10.3 years of bitcoin issuance demand chasing one year’s worth of supply.
Do the math. It’s clear bitcoin is going much, much higher.
The next catalyst could potentially be 123x times bigger than the approval of a spot bitcoin ETF.
If you’re a longtime reader, you know that I believe every asset will be tokenized.
That means stocks, bonds, titles of ownership, real estate, music rights, collectibles – everything of value – will have their ownership rights secured by a blockchain.
Anyone will be able to trade the rights to assets they own to anyone else anywhere in the world at any time – all with the click of a mouse.
But instead of passing through a bank, lender, or title company, transactions will flow through a tamper-proof blockchain.
I believe the tokenization of real-world assets (RWAs) will unleash a $100 trillion opportunity. That’s 123 times bigger than bitcoin’s market cap.
And this isn’t just pie-in-the-sky thinking…
A recent survey by banking giant BNY Mellon found 97% of institutional investors agreed that tokenization stands to revolutionize asset management.
According to Reuters, there’s over $100 trillion in assets in the U.S. alone.
That includes $97.5 trillion in securities (stocks and bonds), $47 trillion in real estate (commercial and residential), and $2 trillion in commodities (like gold and steel).
In my view, the venture that will bridge these RWAs to the blockchain is EDX Markets.
EDX is a digital asset exchange that launched in June 2023. It allows financial and crypto-native firms to trade digital assets.
The venture is led by Sequoia Capital, the firm behind startups like Google, Apple, Cisco, Instagram, PayPal, YouTube, and Airbnb.
It’s also backed by some of Wall Street’s biggest financial firms, including Charles Schwab and Fidelity. And former executives from CME Group, Citadel Securities, and Goldman Sachs will run it.
Combined, these firms have more than $11.5 trillion in assets under management and 77 million active broker accounts.
Currently, EDX Markets only supports trading of bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). I expect the number of digital assets traded to grow as the marketplace expands.
While EDX Markets is already live, it plans to complete the rollout of its EDX Clearinghouse by the end of the year. The clearinghouse settles trades on the marketplace.
The rollout of the clearinghouse is a big deal because it’ll be an institutional-grade trading desk that all of Wall Street can trust.
Right now, if you run a bank, brokerage, or big financial institution, it’s very difficult to get in and out of crypto. It’s like you’re stuck on a narrow bicycle path.
When they flip the switch on EDX Clearinghouse, it’ll be like opening a massive 16-lane superhighway for these semi-trucks full of cash. The impact of this event will be felt across the entire crypto sphere.
The third and final catalyst is the upcoming bitcoin halving. As you know, each halving reduces supply coming to the market.
There can never be more than 21 million bitcoins in existence. Its computer code strictly regulates the issuance.
As supply decreases and demand remains constant or increases, basic economic principles suggest bitcoin’s price should rise – by a lot.
The first halving occurred in 2012. The second in 2016. And the third in 2020. The fourth will occur in April 2024.
So next year, the reward miners receive will drop from 6.25 to 3.125 BTC. Over one year, that’ll drop the supply coming to the market from about 328,500 BTC to about 164,250.
This supply decrease creates disinflationary pressure on bitcoin, which fuels its price rise.
You can see that in the chart below. It shows the average price level of bitcoin before and after its previous two halvings.
The chart is formatted as an index. That means the index value on the date of the halving equals 100.
On average, bitcoin has risen by as much as 1,534% in a little over a year after the previous two halvings.
If we see a similar rally after the next halving, bitcoin’s price would rocket to $676,500.
Now, I’m not saying that bitcoin will move that high this cycle. But it’s possible.
So you definitely want to own some bitcoin. And as bitcoin goes, so goes the rest of the crypto market.
And right now, there’s a huge opportunity in the altcoin market the media is missing….
And as goes bitcoin, so go the altcoins… That means when bitcoin enters another three-year bull market, it’ll act as a slingshot for altcoins.
And if you’re looking for smaller cryptos with potentially high upside, I’ve found a project that’s enabling a major trend: the rollout of a central bank digital currency, or CBDC.
You see, the Federal Reserve recently launched a program that could lead to a mandatory recall of the U.S. dollar.
This program could replace the dollar with a new digital version that will be radically different from what you have in your bank account right now.
I put together a briefing to explain what this new digital dollar regime means for you and your money.
You can watch it for free right here.
Friends, the beauty of this idea is you don’t have to risk a lot to make a lot. So it’s another avenue to massively grow a small amount of capital that could end up eclipsing your entire net worth.
Let the Game Come to You!
Big T
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
