Today starts a new chapter in crypto currencies – Bitcoin has decisively taken out the Dec 2017 all time high (ATH) of US$19,596, with possible momentum which could take prices to US$27,770 within days – the next overhead resistance:
Since exceeding the correction channel (#1 above) in late July, BTC has been going almost straight up (orange line), having borken out of 2 new tentative upward trend channels (#2 and #3 above).
If the US$27,770 resistance is breached, then technically US$60-90k could be within reach by as early as Apr 2021… almost too fast for comprehension. So what is driving this very quiet of rallies?
One word explains it all: Institutionalisation
Large companies, funds, families are now making big allocations to cryptos (starting with bitcoin), and that is why there is almost no euphoric newsflows this time like during the 2017 peak; instead the prices just keep soaring without the general public talking about it.
Some big name allocations include Paul Tudor Jones (article 1 below), Mass Mutual (article 2), and Guggenheim (table below, whose target price is $400k!):
B&MM’s 3-prong approach
We have been assisting Professional Investor level clients on crypto allocation since 2017, and adopt 3 approaches:
1) B&MM flagship strategy – shifting between stable, high beta, and bitcoin to maximise returns;
2) Bitcoin only – for hodlers out there who just need a simple exposure;
3) high beta strategy – for aggressive investors who prefer… high beta!
If Paul Tudor Jones or JPM is right, perhaps now’s still not too late to enter the fray…
Happy Investing!
——————article 1 [emphasis ours]————————
Paul Tudor Jones says he likes bitcoin even more now, rally still in the ‘first inning’
Oct 22 2020 11:20 AM EDT Yun Li…Billionaire hedge fund manager Paul Tudor Jones has turned more bullish on bitcoin, calling it the best inflation hedge.
…”I like bitcoin even more now than I did then. I think we are in the first inning of bitcoin and it’s got a long way to go,” …He first revealed his bitcoin investment in May and he said Thursday he holds a “small single-digit investment” in the cryptocurrency.”The reason I recommended bitcoin is because it was one of the menu of inflation trades, like gold, like TIPS breakevens, like copper, like being long yield curve and I came to the conclusion that bitcoin was going to be the best inflation trade,” Jones said.
…”Bitcoin has this enormous contingence of really, really smart and sophisticated people who believe in it,” Jones said. “It’s like investing with Steve Jobs and Apple or investing in Google early.”
——————article 2 [emphasis ours]————————
JPMorgan Estimates Institutions Could Put $600 Billion Into Bitcoin
…JPMorgan Chase, the largest U.S. bank, has estimated that up to $600 billion could potentially flow into Bitcoin, Bloomberg reports….As reported by U.Today, Massachusetts Mutual Life Insurance Company — which has $235 billion in its investment account — stunned the cryptocurrency industry with its $100 mln cryptocurrency bet.…“The adoption of bitcoin by institutional investors has only begun, while for gold its adoption by institutional investors is very advanced.”
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