Bitcoin did it! On Wednesday, bitcoin cracked the $20,000 mark and set a new all time high at $22,065.07. When I wrote to you last week, bitcoin was trading around $18,000. And I was hoping bitcoin would hang out around $18,000 for a few weeks before continuing its slow and steady ascent to $20,000 and beyond.
Bitcoin cracking $20,000 this quickly feels almost anticlimactic. We knew it was coming. We just didn’t know when. But that actually makes me more excited for bitcoin’s future.
There was no specific event that triggered bitcoin’s rise this week. It was a natural and organic show of strength. And that bodes well for the future. There’s likely a lot more room for bitcoin to grow during this crypto bull run.
More importantly, look at the other things that happened in the crypto markets on Wednesday:
- American Express invested in FalconX — a crypto trading platform for institutional investors.
- One River Digital Asset Management said it has commitments to purchase a combined $1 billion worth of bitcoin and ethereum (it has already bought $600 million in crypto). One River Digital is an offshoot of One River Asset Management. And the new venture is backed, in part, by billionaire and Brevan Howard Asset Management co-founder Alan Howard.
- Guggenheim Partners Chief Investment Officer Scott Minerd suggested bitcoin should be worth $400,000 because of bitcoin’s scarcity and its relative value to gold as a percentage of GDP.
The growing institutional interest in bitcoin is driving much of bitcoin’s growth. And Wednesday’s developments highlighted that fact.
Despite bitcoin’s all-time high on Wednesday, most cryptos are still well below their 2017/2018 record prices. And that’s actually a good thing too. It means we’re not seeing the same bubble we did a few years ago.
The First Stage Investor portfolio has done particularly well this year.
- Bitcoin is up 206.1% year to date and 545.2% since we recommended it in 2017.
- Ethereum is up 387.2% year to date and 110.5% since we recommended it in 2017.
- Litecoin is up 124.8% year to date and 84.8% since we recommended it in 2017.
- Monero is up 253.1% year to date and 105.5% since we recommended it in 2019.
Even with these great gains, none of the portfolio coins — except bitcoin — have hit their all-time highs. In fact, they haven’t come close. And that’s OK. Bitcoin is just the first coin to really hit its stride during this bull run. There’s still plenty of room for these other coins to grow and develop too.
Bitcoin is still the safest bet in crypto right now. But as you can see from our portfolio, there are other coins worth looking into. Just be careful out there. Crypto is still a risky asset. And the market is filled with coins that people shouldn’t invest in. So do your research. Make sure you invest in quality projects. Never invest money you’re not willing to lose. And make sure bitcoin makes up at least 70% of your crypto portfolio.