Another 1,000% Move Getting Closer…
Many high level fund managers are still absolutely bearish on Bitcoin and cryptocurrencies, in general. Some top-performing investors still call it a bubble, a fad, and even a fraud.
These same traditional Wall Street asset managers have completely missed out on the 1st decade of cryptocurrencies, and the banking establishments are under duress from the superior technology of blockchain.
That's the real reason they're bashing one of the most important economic breakthroughs ever. In the same way that struggling retailers have spent billions on smear campaigns during the 2000s on the dangers of shopping online, in an attempt to stop the transition to shopping on the web, so have bankers and governments attempted to put a lid on Bitcoin.
It backfired on them, big-time, in 2017, and now only a few voices remain adamant that the future of the blockchain economy is uncertain.
The rest of Wall Street is not only facing facts, but are ready to turn a page. You see, what you can always bet that these money-loving, two-faced hypocrites will do is to change their versions of what's a good investment and what's not, depending on what they can push to clients and make profits out of.
Right now, Wall Street is fighting hard to make sure that the billions of dollars that cryprocurrency exchanges are collectively making around the globe, without sharing their pie with any of the usual suspects (JP Morgan, Goldman Sachs, and others), start trickling their way in as well.
You see, the collective investment power of the Wall Street client is in the trillions. Put together, there's over $25 trillion dollars that are currently allocated to stocks and bonds. That's unreal, and the likelihood that 1.5% of that will be divested into cryptocurrencies is highly plausible.
This type of asset allocation adjustment will result in nearly $400 billion of cash injections into the crypto economy.
Remember that while the entire market cap of cryptocurrencies sits at $500B today, it is estimated that only $50B-$100B has actually been invested and that the mining of new coins has resulted in the rest.
Using this ratio, we know that a $400B injection could catapult this to a $2T-$4T sector value. That's 10 times today's size, but more importantly, it means trillions of dollars are up for grabs for us.
The crypto economy is gathering steam for its next move and historically that begins around the 1st week of March, which means we're on the launch pad at the moment.
Since stocks are, in no doubt, coming nearer the end of a bull market with each passing day, and since bonds are basically entering a bear market, Wall Street will advise their clients to allocate funds into the cryptocurrencies as a way of reducing the overall volatility and concentration of their portfolios.
Cryptocurrencies have proven to be uncorrelated to most major economic events, which affect stocks and bonds. This makes them unique.
As the Federal Reserve continues to attempt to somehow raise interest rates, without putting the brakes on the global economy, we will have to monitor our portfolios closely.
For now, we're just beginning to see wages increase for the first time in nearly 30 years, which will allow companies to stay highly profitable, even as their borrowing costs increase and the price they pay for raw materials rises, becuase te consumer will have spending power.
In other words, the stock market has more room to continue its record-breaking 9 year bull market, but, with each passing day, the risk of inflation, a deadly one, grows bigger.
It's a delicate game with high risks, which is precisely why uncorrelated asset classes (such as cryptocurrencies and blockchain technology) or inverse-correlation investments (such as natural resources) will be valuable tools going forward.
Best Regards,
Jayadipa
President, jayadipa.top
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