September has never been a great month for bitcoin…
According to crypto data firm Coin Glass, bitcoin has only recorded positive monthly returns in September twice since 2013.
So it’s no surprise BTC is down 13% since August 9.
While the world’s largest cryptocurrency has experienced some selling pressure the past month… there’s one group that continues to accumulate: HODLers.
Right now, there are 48.5 million bitcoin HODLers (hold on for dear life). For perspective, that’s more people than the population of Spain.
These are true believers. You’ll have to pry bitcoin from their cold, dead hands. (Or in this case, their cold wallets).
They ain’t selling for nobody.
And according to Daily editor Teeka Tiwari, there will be buyers coming into the market – hundreds of millions of them.
But when the next bitcoin bull cycle begins, those buyers will need to pay a premium to get tens of millions of HODLers to part ways with their beloved BTC.
As Teeka wrote in Friday’s Daily, we’ll inevitably see the launch of a spot bitcoin exchange-traded fund (ETF).
And it will increase mass adoption of this asset class – like the SPDR Gold Shares (GLD) ETF did for physical gold.
This time, the game-changer will come from BlackRock, which has applied for a spot bitcoin ETF.
The Wall Street titan has nearly $10 trillion in assets under management. Let’s just say it allocates 5% of its capital to a bitcoin ETF.
That’s $500 billion of potential new buying. And today, the entire market cap of bitcoin is just $502 billion.
Invesco, Fidelity, and WisdomTree have also filed applications for bitcoin spot ETFs. Combined, these three firms have nearly $6 trillion under management.
Back to Teeka…
But here’s the rub that most folks don’t understand…
Unlike the stock market, where a company can just keep issuing an unlimited amount of shares, there will only ever be 21 million bitcoin.
Here’s another thing to consider…. The people who buy BTC don’t sell it.
Over the last year, 68% of all BTC holders haven’t moved their coins. Over the last five years, 28% of all BTC hasn’t been moved…
Once the massive demand comes in, it’s going to hit a brick wall of BTC holders who won’t sell.
The outcome will be one of the most shocking parabolic price moves higher anyone has ever seen in their lifetimes.
Look, this might be the last cycle you can buy bitcoin at these prices.
So if you see more down days in September, consider taking a position – or adding to your existing position – in this world-class asset.
I don’t know about you… But when the floodgates open, I want to be on the sell side of that “brick wall.”
In the meantime, if you’re looking for altcoins to add to your stack, Teeka’s paying close attention to a project that’s enabling another major trend he’s following: the rollout of a central bank digital currency, or CBDC.
You see, the Federal Reserve recently launched a program that could lead to a mandatory recall on the U.S. dollar.
This program could replace the dollar with a new digital version that will be radically different from what you have in your bank account right now.
He’s put together a briefing to explain what this new digital dollar regime means for you and your money.
Plus, he’ll show you the one move you must make when your bank tells you it’s moving all your cash into this new digital dollar.
You can watch it for free right here.
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Regards,
Chaka Ferguson
Editorial Director, Palm Beach Daily
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