Some readers may not read previous posts with the right set of eyes. To be clear, NursingMoney.com DOES NOT HATE CRYPTO. In fact much of our Tier 4 asset education can be applied to crypto markets. The following post is used to help you understand how we think and approach a potential crypto investment.
BTC hit 93k last week, which was my initial target for the end of this year (by using a similar projection to the one that follows). If it’s something you are invested in, my next projection is that BTC should be priced at a level where all available BTC will be equivalent to the value of total above ground gold which is currently $12T. Currently all available BTC is about $1.8T. Which means BTC can increase in price by about 6x.
If Trump uses the current government holdings from FTX collapse (69k BTC = $6.2B) and ultimately tries to build a US strategic reserve of 5% of all BTC ~$90B or about 1 million BTC. The US will need to buy about 13.5x what it currently has. In order to do that, the US will have to buy at a rate twice as fast as the expected growth in BTC price which will create upward price pressure, and I would initially target a doubling of the current price over the next year.
If the assumptions of this analysis are even remotely accurate, this analysis supports a belief that BTC will be valued at around $180k some time next year. And even if wrong on the time estimate, there will likely still be upward pressure on price due to supply and demand considerations.