F&G: 75

Price: $77,300 or £59,800

Hashrate: 719 EH/s

Since the US election results the amount of information surrounding the markets, Bitcoin and everything in between has been hard to keep track of.

When it doesn’t rain, it pours.

And so in this entry, I am going to try and note some of the most important developments that I have come across this week.

Strap in.

It’s going to be bullish.

• Donald Trumps Wins the Election: Of the candidates that ran for the presidency, Trump was the most bullish for Bitcoin. It was Trump who came out publicly in favour of bitcoin, and even went so far as to say that he would begin a US stockpile of bitcoin as a strategic reserve asset. He also said that he would free Ross Ulbricht, the founder of Silk Road. Both these announcements at the Bitcoin conference in Nashville 2024 most likely solidified his support from the vast majority of bitcoiners. Upon the announcement of his win, bitcoin rallied, surpassing its previous all time high and went up by about $7k in the space of a day.
• The Market’s Reaction: The stock market also reacted positively towards the results, and was still rising when the weekend rolled in. This is not likely to stop soon because;
• Central Banks Cut Interest Rates: Both the Bank of England and the Federal Reserve cut their interest rates by 25 basis points almost at the same time. I wrote about this in a previous F&G article, but it basically means that money is becoming cheaper. This cheap money usually finds its way into assets like gold, bitcoin and stocks.
• Blackrock: This financial giant with possibly over $10 trillion in assets under management (AUM) has been buying bitcoin at a phenomenal rate. Its bitcoin ETF is now larger than its gold ETF. Not only that, but 2 days ago it bought a little over 14,500 bitcoin in one day – estimated to be around $1.1 billion. This is 42 times the daily issuance. That means that of all the bitcoin mined in one day at today’s issuance rate, Blackrock bought 42 days worth in a single day. At some point, this cannot go on any longer, at which point the price has to accommodate the demand.
• United States Stockpiling Bitcoin: As mentioned earlier, Trump and Sen. Cynthia Lummis announced plans to start stockpiling bitcoin as part of a US reserve. There are now rumours that this will be happening and a bill has been proposed. This has consequences. Many countries will be looking to try and beat America to the punch. But when nation states begin to get heavily involved, the price could go exponential. We could see a drastic increase in price that every model we have just simply cannot comprehend.
• Microstrategy: Just before the election, Michael Saylor announced his plans for MSTR to purchase an additional $42 billion worth of Bitcoin and their stock has been performing very well as a result. They could very well become one of the first ‘Bitcoin Banks’ and there are even rumours that Saylor may be the ‘Bitcoin advisor’ to Donald Trump and the US. I am also of the opinion that either Microstrategy or Tesla will become the first trillion dollar company, with my gut leaning more towards MSTR rather than TSLA.

In summary, this week has been very big for Bitcoin. I have probably not captured every important development in this post because there has just been too much to absorb and process. I myself am still trying to work out where we are and what could be on the cards. But to anybody who is not yet in this space, I would say this:

Banks and countries are gearing up to hold as much bitcoin as they possibly can. They see the problems that the current monetary system has and they are looking for a way out. If nothing else, people are beginning to see that bitcoin is catching on, gaining momentum and the fact that it is limited in supply is beginning to dawn on them.

Ladies and gentlemen, we could be on the verge of a MOASS (mother of all supply shocks) that sends the world first reeling, and then scrambling as it tries to acquire as much bitcoin as it possibly can, further sending that god candle ever upwards…

Strap in folks.

2025 is going to be insane.