This Could Be Your Last Chance to Buy Bitcoin at These “Cheap” Prices
At today’s price of $72,000, bitcoin looks anything but cheap.
Friends, I’m here to tell you that today’s price could look frightfully cheap in as little as 90 days. That’s because I expect an ocean of new money will come barreling into bitcoin.
That new demand is going to slam head first into the reality of the bitcoin halving. The “halving” (or “Halvening” as some call it) is when the new supply of bitcoin is cut in half.
The halving occurs every four years. The first halving occurred in 2012. The second in 2016. And the third in 2020. The fourth is scheduled on or around April 20.
At the time of this writing, 900 new bitcoin are issued each day. In less than two weeks, that number will get cut to 450 new coins per day.
On average, bitcoin has risen by as much as 1,534% in a little over a year after the previous two halvings.
A Flood of Demand Will Hit a Wall of Supply
This year the halving is coinciding with the biggest liquidity onboarding event bitcoin has ever seen. Of course, I’m talking about the launch of bitcoin exchange-traded funds (ETFs).
For the first time bitcoin is now fully plugged into the traditional financial system. That means ownership, storage and trading of this asset is now an entrenched part of the $461 trillion global financial system.
I cannot overstate how much money bitcoin holders will make from this acceptance of bitcoin by traditional finance.
With traditional assets, you can increase their supply to meet new demand. However, you can’t make more bitcoin outside of its pre-programmed issuance schedule.
That means when the code cuts the new issuance from 900 new bitcoin per day to 450, new bitcoin per day… It won’t matter how much new demand there is. The new issuance will still only be 450 new bitcoin per day.
Let me show you how dire the new supply issue is…
Since the bitcoin ETFs went live on January 11, we’ve seen $12 billion in net inflows into spot bitcoin funds. (Spot means these funds hold actual bitcoin, not a paper claim to bitcoin such as a futures contract).
At the current issuance rate of 900 new coins per day, the demand for bitcoin by the ETFs is outstripping new supply by 3 to 1. That means for every 900 new bitcoin created, ETFs are buying 2,700 bitcoin.
If demand stays the same, after the halving you’ll have 2,700 in daily bitcoin demand but only 450 new coins being issued.
Do the math. If there is no change in demand, the supply demand imbalance will leap from 3 to 1, to 6 to 1.
Think about that.
Now think about this: How ridiculous is it to assume that demand will stay the same?
Of course, demand for BTC ETFs has to go up. The greater population at large is only just beginning to wake up to bitcoin as an investable asset class.
And that’s what brings me to my next wave of new bitcoin buyers.
A Brand New Source of Demand Over the Next 90 Days
It’s no secret that a large part of Wall Street has been burying its head in the sand hoping bitcoin would just disappear.
Whether it’s JPMorgan Chase CEO Jamie Dimon calling it a “pet rock” or global money manger Vanguard refusing to even list the bitcoin ETFs… There are still plenty of bitcoin critics within the stuffy world of traditional money management.
Four of the biggest money managers of retail wealth – the so called “wirehouses” made up of UBS, Merrill Lynch, Wells Fargo and Morgan Stanley — have refused to allow their brokers to recommend bitcoin investments.
Collectively, these firms manage more than $14.4 trillion and millions of client relationships.
I believe that is all about to change.
On April 5, Black Rock announced that several new firms have become authorized participants (AP) of its iShares Bitcoin Trust (IBIT) .
An AP acts as a provider of liquidity to an ETF. Long story short, the AP’s make money from spreads and market inefficiencies by providing liquidity to the ETF.
This matters because one of the names added to the new AP list was none other than the money management giant UBS. (The others are no slouches, either, and include major players like Goldman Sachs, Citigroup and Citadel Securities.)
With $3 trillion under management in its global wealth business, UBS is a financial juggernaut. Now that it has a way of getting paid from their customers’ order flow for bitcoin ETFs, I believe UBS is moments away from allowing all of its advisors to start offering bitcoin to their clients.
Once UBS gives the green light, the rest of the wirehouses will have to open their platforms as well or risk a mass exodus of advisors and clients.
Friends hear me when I tell you this… In my opinion, ALL of the wirehouses will approve bitcoin ETFs for their customers.
Within the next 90 days, I expect UBS to begin opening up its wealth management platform to bitcoin and the rest of the wirehouses will eventually follow suit. In my opinion, 90 days is generous. Just look at how much money BlackRock amassed in its ETF in 90 days – over $19 billion.
This is a race for market share, assets and fees. Make no mistake, the wirehouses may not like bitcoin but they LOVE money. They’ll come into bitcoin like a thundering herd of elephants and the price spikes will be beautiful.
To me this is a foregone conclusion that has NOT yet been priced into bitcoin.
Friends, the time to take action is now.
If you don’t own bitcoin, then at least put on a half-sized position right here. If I’m wrong over the short term and it pulls back, you can always buy more.
But if I’m right and UBS greenlights BTC for its 6,000 wealth advisors — and Morgan Stanley, Merrill and Wells Fargo join them — you may never see bitcoin this cheap again.
More demand than you have ever seen for bitcoin is about to emerge at the same time the supply of newly issued bitcoin will be at the lowest it’s ever been.
Do the math and buy some bitcoin.
Let The Game Come To You!™