So people have been sleeping on Bitcoin until... "Bitcoin surging back above 11,000, but is it back?" I think this thing is a $100,000 a coin and I think it is in the next 20 years a million dollars a coin. What is the story this time ? Is it Institutions actually getting in because that was a big hype story like a year ago. Bitcoin gone wild this year with the crypto coin now at more than a hundred percent after crashing from its all-time high back in 2017.
Well, what I think might be happening is an anticipation of a coming supply shock. If this is your first time here make sure you subscribe and click on the bell so you don't miss any new videos for the first time in months Bitcoin has broken out of the longest-running bear market in history. And the valuation of the crypto market has increased by billions People are running in the streets trying to figure out how to buy Bitcoin The FOMO is getting real Bitcoin breaking above 11,000 a 15-month high is notable because the cryptocurrency is only traded above 11,000 percent of its total days in existence while the unveiling of Facebook's Libra has played a role in Bitcoins comeback it's worth noting that it was already up about 140% this year prior to the announcement Others say bitcoins rise is less to do with Libra Which is designed as a means of payment for international money transfers and more about the uptick in geopolitical Tensions from Iran to Turkey to the US-china trade war. Data from cryptocompare Illustrates how international demand for crypto currencies has been on the rise in countries like China now This is data based on volume in the last 24 hours there's some discussion around whether there is a correlation between gold and Bitcoin.
One Portfolio manager telling me it's less about the correlation and more about investors trying to diversify smaller parts of their portfolio into other assets Genesis Capital, which manages crypto funds for family offices and high net worth clients says it continues to see more activity from Institutional counterparties with volumes two to three times higher compared to 12 months ago. Well, there's a couple things going on So let's break down what the markets been anticipating. First of all, you're starting to get that long waited for institutional adoption for that fidelity is rolling out institutional custody They're getting customers. People are starting to buy institutions retail anticipation We saw from TD Ameritrade they invested in ErisX They're gonna start opening crypto trading Bitcoin trading to their retail customers over the coming months Perhaps three to six months or so people are anticipating that.
It's official. The crypto bull market is here And if you're one of those perma-bears who are still waiting for $1,000 Bitcoin stand aside because the Bogdanovs have spoken. So what's next for Bitcoin? First, we need to talk about bitcoins market cycles because while history doesn't repeat itself it often rhymes When it comes to investing human emotions tend to oscillate between two extremes fear and greed The constant balancing act between the two creates a cycle of market emotions for years traders and investors Have studied the cycle of market emotions with the help of a chart known as The Wall Street Cheat sheet. It starts with hope, disbelief Optimism, and ends at the top of the market cycle with euphoria a point of maximum financial risk This is the time when investors think nothing can go wrong more investors enter the market for its amazing returns Leading to a further rise in price and valuations reach dizzying heights before eventually reality sets in complacency, anxiety, denial, panic capitulation, anger, depression and the cycle continues...
The cryptocurrency market was fueled by euphoria in the last quarter of 2017 Bitcoin prices rose to $20,000 within seven weeks on speculation that the launch of a futures market would open up floodgates for large institutions to buy cryptos The bubble was popped. Just two weeks into January by a regulatory crackdown in China and South Korea two of the biggest sources of demand for cryptocurrencies back then. Now it's a well known fact that all Markets move in cycles and crypto is no exception The only major difference is that cycles in this market have been more compressed since bitcoin is just ten years old. There have been three major Bitcoin cycle Peaks over the past decade and Analysts have been using them to predict the next one. The first cycle took 329 days to peak and occurred in 2011 when Bitcoin prices hit a high of just 32 dollars a bear market followed until the next peak which came in 2014 with Bitcoin prices topping out at around $1,000 then came the big downturn of 2014 when Bitcoin lost over 80 percent of its value falling to below $200 per Bitcoin the upswing took over 20 months to initiate and began in late 2015 leading us into the previous peak of just below $20,000 per Bitcoin in the third cycle of 2017.
What is the story this time? Is it institutions actually getting in because that was a big hype story like a year ago, and then it seemed to fizzle Why do you think that there's been a new wall in price, or is it just another up and down in crypto? It's probably more the latter but look sentiment the technicals look great I mean 80% drawdown in price happens what three four times before.
Every time that's happened, record highs. So as soon as you get the price going back up animal instincts come back, but the difference between this increase in price versus the bubble in 2017 is the infrastructure is much different you have Custodians now you have trading software you have compliance software people were educated about the asset class So this time is the sentiment has been fantastic We just launched a big advertising campaign right actually just before the price started going up.
Campaigns all really based upon Barry trying to get people to start seeing digital gold as Gold and getting gold bugs into digital gold. The ad is really designed to be provocative Anything that provokes gold bugs this way like how many angry tweets did you get from like gold people So this is already gotten over a million views and it's actually just starting today up here on TV So the commercials just started being broadcast today. Look, I think that what's important is to start the conversation There's a generational shift that's happening in the way that investors think about gold. So younger generation, I grew up I was born after the gold standard didn't grow up during a period of war where you had to be able to store your money Via something like gold. Younger generation money is digital anybody who has a phone can now access this asset class and so you have what is Approximately 68 trillion dollars of wealth being handed down from boomers to X's and Y's and Millennials or the next 25 years That's not gonna stay in gold It's not going to all go into Bitcoin, but whatever is in gold is certainly going to diversify into something else so what could be the major catalyst to trigger this epic price rise again? An event known as the Bitcoin having.
Is it back? After 2018 the crypto winter based on your experience Enthusiasm are people ready to go ahead again. Is it real? Well what I think might be happening is an anticipation of a coming supply shock in 2020 So what we're looking ahead to is a halvening event The way that new Bitcoin is introduced to the market is through a process called mining and the mining reward decreases by half every few years and so in 2020 We'll have much less of a daily supply of Bitcoin than we do now We'll have half less and so while we're looking ahead to the halvening event and the supply schock we're also seeing a greater demand for Bitcoin and new on ramps for more familiar and conventional sources So there's an anticipation that we'll be a broader group of Consumers that have access and appetite for Bitcoin.
To keep it short, its basic supply and demand. every four years a halving occurs that cuts the Bitcoin mining awards in half with the latest having scheduled to reduce the reward from BTC to BTC this process was intentionally built into Bitcoin to keep Inflation of the cryptocurrency in check while at the same time creating scarcity bitcoin is set to undergo a mining reward in May 2020 and historical data indicates the process tends to trigger a price increase at least a year in advance Currently Bitcoin blocks are mined every 10 minutes with a reward of BTC. This means that each day 1800 new bitcoins are introduced into circulation on May 24th 2020 the number of Bitcoin created every 24 hours will be cut in half. Two previous halving events in 2012 and 2016 have been followed by large upside momentum and it is expected that the 2020 having will have the same effect on the price 2012 I was introduced to it. I started to accumulate accumulate 2013 I wrote an article and I said, you know what there's so much asymmetric upside here This is a thing that either goes to you know at the time I said roughly the value of gold and At the time it was about a hundred dollars a coin and so there's very little downside.
There's all this asymmetric upside I said take one percent of your net worth and Buy this schmuck insurance and it's a schmuck insurance in this kind of very elegant beautiful ways that was at $100 though? I actually started hearing from people that I know very well Who don't often invest who are now asking me if this is the time to buy. Here's the thing This is now a confidence game. This is a fantastic fundamental hedge and store value against Autocratic regimes and banking infrastructure that we know is corrosive to how the world needs to work properly You cannot have central banks infinitely printing currency You cannot have folks with you know, misguided and misdirected monetary and fiscal philosophy to have the ability to hedge that out in a way that isn't Fundamentally correlated to the people and the infrastructure that made those decisions that we were not a part of Fundamentally, I think is a smart bet.
But the point is if you haven't jumped on this bus or train or whatever vehicle you want to describe it as. Has it left the station? No, so here's what I would say the same way that I said in 2013 put 1 percent of your net worth into Bitcoin I will put myself out there today I think this thing is a hundred thousand dollars a coin Probably in the next three or years and I think it is in the next 20 years a million dollars a coin. So there you have it So if you have a hundred dollars to invest what I'm saying is put $1 $1 and and the reason that $1 is still valuable is that it is fundamentally not correlated to the other 99 and Just on the off-chance That all the people that manage the 99 may not totally know what they're doing The $1 may actually save us all.
Billionaire Tim Draper is one of the most confident Bitcoin traders in the world during an interview He reassured the public that he is certain that bitcoin will become more valuable than fiat currencies crypto generally will replace all Fiat because it's just better currency and all the best engineers in the world are working on that They're not working on how to improve services for the dollar by the way That's a hundred trillion dollar market So that means that we have a long way to go in the crypto market.
We're now in the hundreds of billions It's like it's got a thousand times on what it is now to go. I think bitcoin is clearly the leader And it will be the standard by which all the other currencies will have to compete. It'll be the equivalent of Microsoft And software, you know that kind of thing It's very likely that Bitcoin will be the largest and biggest currency because they have a network effect It grows as the network grows. Bitcoin bull Tom Lee says that the crypto winter is over and new all-time highs are likely to come by 2020 and one Bitcoin bull says the crypto winter is over and spring has Officially sprung Tom Lee a fund strat Global Advisor joins us now breakdown why you become even more bullish on the cryptocurrency? As you know last year was a Terrible year for crypto a massive bear market.
There's eleven signs that historically only take place in a bull market So I think the evidence is mounting that there's a bull market But I think the few that really matter are things like on chain blockchain volumes turned positive on a year-over-year basis in late January You know Bitcoin crossed above its 200-day moving average on April 1st It's a big technical hurdle to cover and it hasn't been above it starting with average more than 13 months and we surveyed OTC brokers, you know, they're really important in terms of how institutional investors trade crypto and Universally they've all talked about a 60 to 70 percent increase in activity levels a number of clients and the trading per client rating per client Really taking off recently So I think you're seeing signs that fundamentals are improving technicals are improving then now there's real activity by essentially by crypto HODL'ers.
This recent crypto recovery has been great But we still have a very long way to go before we reach previous all-time highs The key point is the recovery has barely begun. You aren't late to the party So if you missed the last couple of months, don't sweat it this pump was just the beginning be ready oh and if bitcoins already gone parabolic by the time you see this there's always Altcoin season if you made it to the end of this video Let me know in the comments if you're bullish or bearish on Bitcoin in 2019 also, make sure you subscribe and like this video.