Bitcoin's $1.9 trillion market cap is tiny next to equities and real estate, but global stimulus and record M2 money supply are flooding in. The gold-to-Bitcoin ratio has decoupled for the first time, and JPMorgan, BlackRock, Vanguard, and Fidelity are all moving into crypto while a U.S. market-structure bill nears completion.
Chapters
Yes, there is a lot of pain in the crypto market right now. Let me give you a few thoughts on the market. This is a great post from Hunter. He's the Bitwise CEO. He said this: there's $120 trillion of dollars of wealth in equities, $140 trillion in fixed income, $250 trillion in real estate, $100 trillion in M2, $30 trillion in gold, and only $1.9 trillion in Bitcoin. Bitcoin at $85,000, $95,000, or $105,000 is all the same. In any case, it's just a small drop in the bucket. This number coming to become more like one of these numbers, even similar to gold. Right now, the gold-to-Bitcoin ratio is extremely off. There is— gold has seen a move to a lot of quantitative easing type of measures. The US is preparing a $2,000 stimulus check. Japan preparing $110 billion in stimulus. China just approved a $1.4 trillion dollar stimulus package. The Fed is ending QT, which is quantitative tightening, on December 1st. It actually could happen this week. I heard a report off of Bloomberg it might start this week. The US is issuing $1.9 trillion Treasuries per year. Canada is restarting quantitative easing. Global M2 has reached a record high. And then this is— they're saying, how do we not get more inflation? And I agree. The gold to Bitcoin ratio— historically, gold has actually followed Bitcoin and Bitcoin Gold, but we've seen a big decoupling the last few months. Generally speaking, whenever we've seen a decoupling like this, they usually close the gap. Either gold will fall or Bitcoin will rise. Also have the crypto market structure bill looking like it's almost done. Coinbase CEO Brian Armstrong said they only about 10% left. The goal is to have it done by Thanksgiving, which again is huge. I keep talking about this, but we have JPMorgan Chase, Vanguard now considering getting on Bitcoin. We have BlackRock, Fidelity, Bank of America, MasterCard. You name it, all building, pushing on crypto. Either all these institutions are just completely wrong about blockchain, or maybe they are right, and the price reflection of today is not reflected of the overall building of what's going on in the world. So follow along to stay in the loop.
