Well, that happened faster than expected. Last Friday I wrote a piece for Early Investing about how bitcoin was in a very sweet spot. I covered the bullish institutional case, along with other factors leading to a very positive environment.
I believe the most important factor contributing to bitcoin’s surge is that publicly-traded GBTC — the Grayscale Bitcoin Trust — is now gobbling up 77% of all newly-mined bitcoins. That’s one institutional fund taking up most of the newly-mined BTC. It’s incredible. Here’s a chart showing the percentage of new BTC that GBTC consumes.
This is incredible. At the time I wrote that, Bitcoin was trading around $11,200. Today, bitcoin is already up to $12,900.
We may get a short-term dip — but I believe we’re headed to new all-time highs in the near future. There may be some resistance in getting to $20,000. But I’m pretty sure we’ll push to new highs in the next six months or so. After that, I think we could go to $40k-to-$50k by the end of 2021. And that’s my relatively conservative forecast. Things could get crazier if institutions start jumping over each other to get an allocation in BTC.
Of course, there are always risks that a major government cracks down on bitcoin or there’s a major hack. But there’s risk everywhere. And I love the risk/reward scenario for bitcoin here.
And if bitcoin does really start to take off, it’s likely that select altcoins will follow along. This could be a very exciting next 12 months (and beyond) for the crypto world.
I’m evaluating a number of potential altcoin recommendations. I think there are actually some solid candidates out there for the first time in a while. Stay tuned — we should have something for you in the near future.