Bitcoin’s Rise Is Unstoppable

Bitcoin’s Rise Is Unstoppable

There’s a new foundation under bitcoin’s price.

This foundation is built on three new pillars I believe will act as a catalyst that propels bitcoin to at least $150,000 over the next 12 months… And serve as the launching pad that rockets bitcoin’s price even higher than that by the end of 2025 

In this special research briefing, I’ll reveal what these three pillars are. And explain why you should position yourself in bitcoin before the rocket ship takes off. Because once it does, the next stop is the moon – and if you don’t embark now, you’ll miss the trip.

Before I get to it, let me introduce myself…

For those of you who don’t know me, my name is Teeka Tiwari.

I was once the youngest vice president in Shearson Lehman history. And after 15 years on Wall Street, I left to run my own successful hedge fund for a decade before retiring.

In 2013, I returned to covering the markets as the editor of one of the most successful newsletter businesses in the world.

Today, I run my own independent publishing firm. And my goal is to help as many Americans as I can reach their financial goals by investing in crypto assets before they go mainstream..

I first recommended bitcoin in April 2016 when it was trading around $400. Since then, it’s up 19,208%. And I’ve recommended 27 other cryptocurrencies that have gone up at least 1,000% or more over the same period.

That’s why I was voted as the most-trusted man in crypto by 130,000 independent analysts.

While my 8-year run has been incredibly exciting and rewarding for me and my followers, I believe the gains to come over the next 8 years will be even more insane.

And the three pillars I mentioned above will be key to igniting what I believe will be a crypto bull market for the ages… Let’s get to them.

Pillar 1: New Regulations Will Unleash New Profit Potential

For years, regulators have struggled to adopt new rules for bitcoin. This is common with new technology or a new asset class.

For example, the internet operates under decades-old regulations developed for television and radio broadcasters. And streaming services like Netflix and Hulu operate under the 1982 Cable Act.

One regulatory body that held back bitcoin’s profit potential is the Financial Accounting Standards Board (FASB).

That all changed last September,  when FASB recognized bitcoin under fair accounting rules.

(FASB establishes the rules for how U.S. companies report their financial standings.)

Previously, FASB treated bitcoin as an “intangible asset” on a company’s balance sheet. 

That means if a company purchased bitcoin and it dropped in price, the company would have to hold it at the lower price on its balance sheet until it sold it...

Even if the price subsequently rose to an all-time high like bitcoin is currently doing.

 Let me give you an idea of how ridiculous this rule is…

 If a company bought bitcoin at $10,000 and it dropped to $4,000, the company would have to report their bitcoin at a permanent $6,000 loss – even if it subsequently surges to $100,000.

This of course would result in a charge to earnings that companies would have no way to recoup.

Under the new policy, companies can now report the crypto assets on their balance sheets based on their fair value.

So this new accounting treatment will make bitcoin more attractive for publicly traded companies to hold on their balance sheets.

Just take MicroStrategy, for example. In 2020, it became the first company to add bitcoin in bulk to its corporate reserves.

 Right now, MicroStrategy holds 205,000 bitcoin at an average price of $33,706. As of this writing, bitcoin is trading around $72,000. So MicroStrategy is sitting on $7.8 billion in unrealized profits.

 That’s why I believe this accounting will be a huge catalyst for bitcoin…

 According to the Harvard Business Review, U.S. corporations are sitting on as much as $6.9 trillion in cash. If companies allocate just 1% of their balance sheets to bitcoin, we could see nearly $70 billion flow into bitcoin.

 As important as this new pillar is for bitcoin, it’s a next year story because the rules don’t go into effect until December. This means companies will start reporting the fair market value of bitcoin in 2025.

 This is a story we’ll keep a close eye on as we expect far more than 1% of corporate America’s cash to flow into Bitcoin come 2025.

 The next pillar accounts for the current rally we’re seeing in bitcoin’s price right now.

Pillar No. 2: Bitcoin ETFs

The current rally is being driven by the launch of 11 bitcoin exchange-traded funds (ETFs) in January.

 ETFs are investment funds (somewhat similar to mutual funds) that trade on stock exchanges. They provide investors with simple “one click” way to invest in an index, sector, commodity, or other asset.

 Since these ETFs hit the market, bitcoin is up 54%. By comparison, the S&P 500 is up 7%.

 If you believe the ETF news has been fully priced in I must inform you, you are wrong. Very, very wrong.

 For those banking on a quick drop, you run the risk of bitcoin going to $125,000 - $150,000 range before experiencing its first meaningful (30%+) pullback.

Let me explain why…

 There’s a new buyer in the bitcoin ecosystem. The institutional buyer.

 These include asset managers, insurance companies, hedge funds, university endowments and family offices. Combined, they manage $57 trillion.

 And right now, they are price insensitive.

 What does that mean? It means they don’t care what the price of bitcoin is.

 That won’t always be true… but it is now because they own zero bitcoin. And they have to get off zero.

 In the institutional world, when you have no exposure to an asset and it’s zooming up in price… you have to buy it or risk being outperformed by your peers.

 Just look at NVidia. Its valuation is insane. (NVDA trades at 72 times earnings). But if you’re  an asset manager, and you don’t own Nvidia shares and they keep going up — your firm will fire you.

This performance chasing is just beginning in the bitcoin markets.

 It’s important to understand that institutions allocate to an asset class based on the percentage they need to own – not by the price of the asset.

 This important distinction is being missed by the market. Individuals are looking at the rapid price appreciation of bitcoin and are waiting for a pullback.

 But when institutions make a decision to allocate a percentage of their funds to an asset, they are price insensitive. Their job is to get a certain percentage of their assets in bitcoin, REGARDLESS OF THE PRICE.

 That will lead to the third – and most bullish pillar – of the new bitcoin price foundation.

Pillar No. 3: Institutional FOMO

 In the markets, investor sentiment can unleash incredible rallies and pullbacks. And there’s no investor emotion more powerful than the fear of missing out (FOMO).

 And that leads me to the third pillar of bitcoin’s new price foundation: Institutional FOMO.

 Non-crypto funds are now seeking permission to add bitcoin exposure to their funds via bitcoin ETFs.

 Last week, BlackRock filed a request with the SEC to purchase bitcoin in two of its funds.

 The first is its Strategic Income Opportunities fund with $36.7 billion in assets under management. And the second is its $18 billion Global allocation fund.

 Adding a small allocation to these funds can help improve the performance of the portfolio while diversifying risk. These two are just the first of many that will want exposure to bitcoin.

 With Black Rock providing cover for everyone else on Wall Street, I expect the rest of the fund industry to follow. That means we are at the very beginning of this institutional FOMO trend.

 And now that bitcoin is establishing itself as a legitimate asset class, more and more non-crypto focused funds will start adding bitcoin exposure. Just a little at first, probably 1% or less.

 But as they see the price soar, their greed will pump right alongside the price of BTC. And they will move their allocations up to 2%, 3% and in some cases as high as 5%.

 I worked on Wall Street for 15 years. So I know it’s driven by its own rapacious self interest…put simply greed.

 The larger their assets under management grow, the more money they make. Period.

 Friends, we’ve come a long way since I first recommended bitcoin in 2016.

 In 2017, JPMorgan Chase CEO Jamie Dimon threatened to fire any of his traders “in a second for trading bitcoin.”

 Today, the risk for money managers has shifted from being fired for owning BTC to being fired for NOT owning BTC.

 This fundamental change in Wall Street’s perspective – along with the new FASB rules and the rise of bitcoin ETFs – will act as three pillars under the foundation of an entirely new sequence of bitcoin price discovery.

 Outside of the almost manic belief held by bitcoin Hodlers  (like many of you and myself)... bitcoin has never had truly price insensitive purchasers before. And certainly never at this scale.

 In the same way it is inconceivable for a money manager to have no exposure to the S&P 500… it will soon be inconceivable for money managers, fund firms, family offices and registered investment advisors to have no allocation to bitcoin.

 But there’s a problem for institutional investors: Bitcoin is the only asset in the world with a truly hard cap.

A Final Catalyst That Will Boost Bitcoin’s Price

No matter how many people want to own bitcoin, there can never be more bitcoin issued beyond the preprogrammed issuance rate, which currently stands at approximately 900 new bitcoin per day.

 That number is about to be cut in half on or around April 20. This event is called the Bitcoin Halving.

 If you’re not familiar with the Halving, it’s when the number of newly issued supply of bitcoin is cut in half. The halving occurs every four years.

 The last two times this rare phenomenon occurred (in 2012 and 2016), we saw crypto prices go up 22,800% and 3,247%, respectively, in just 19–21 months.

 After the Halving, we’ll see about $30.6 million per day in new issuance (based on current prices). This assumes miners will continue selling their BTC and not HODL as they typically do after a halving.

 Here’s why that matters…

 Global consulting and accounting firm PWC projects global assets under management to reach $145 trillion by 2025. If we assume 1% of that asset base migrates to bitcoin ownership… that suggests $1.45 trillion of sustained demand for bitcoin.

 Will this happen overnight?

 No. Of course not.

 This will be an ongoing process that will take years to fully unfold.

 But it matters now because it places a sustained “bid” under bitcoin’s price for years to come. Again, these bitcoin buys won’t be linear. They will start slowly at first and then rapidly gain speed.

 If you want an idea of what this could look like, consider how the institutional allocation to Tesla stock went from 12% pre-inclusion in 2019 to 44.8% post S&P inclusion.

 Over that 41-month period, Tesla stock climbed from a low of $12 to a high of $414. That’s a 34.5x return on your money in just 3.4 years.

 But during the previous 8 years, the stock was essentially flat. This is a perfect example of the non-linear nature of price discovery.

 We’ve already been through the waiting period of the crypto bear market. Now comes the value explosion period of new price discovery.

 So how will this play out?

 Let’s assume for a second that $1.45 trillion enters bitcoin in a linear fashion over a 5-year period. That’s $800 million per day pumped into bitcoin every day for 5 years straight.

Let’s be even more conservative than that and say this trend will unfold over 10 years. That is $400 million in new buys every day for 3,650 days.

Friends, on or about April 20 there will only be $30.6 million worth of bitcoin issued per day. Four years from now, that issuance drops to just $15.3 million  per day (using today’s prices).

 Do the math.

There’s not enough new bitcoin coming to market to meet this brand new demand.

Nearly 90% of the current bitcoin supply hasn’t moved in three months… 68% hasn’t moved in 12 months and 31% hasn’t moved in five years.

If you want the market’s bitcoin you will have to pay an astronomical price for it.

 That’s just math. Let’s not make it any more complicated than that.

 The issue for new buyers of bitcoin is unlike that for new buyers of Apple or Nvidia.  Those companies can constantly issue new shares as their stock price rises. Bitcoin’s supply is completely inflexible.

 There’s no bitcoin CEO ready to issue a boatload of new coins to cash in on sky rocketing prices. The supply issuance is FIXED.

 I can’t overstate the importance of this distinctive quality that only bitcoin possesses.

 Friends, what we’re witnessing in bitcoin’s price is simply the opening act of what will be one of the world’s most violent explosions of wealth creation you’ve ever seen.

 That’s not to say we have shed the shackles of volatility… we have not. That is why you should view any pullback as a buying opportunity.

Bitcoin may remain volatile for many years. That’s the admission price we pay for the opportunity to secure life-changing gains.

I pay it gladly and so should you.

Let The Game Come To You!

 Big T