Bitcoin (BTC-USD) is trading above $100,000 for the first time, as a bumper rally continues in the aftermath of the US election (+48% since Nov. 5). The most recent catalyst stems from President-elect Donald Trump’s nomination of Paul Atkins, a crypto-friendly former regulator, to take the helm of the SEC. Here’s what Seeking Alpha analysts have said in the lead-up to the latest milestone.
“If Donald Trump’s plan to create a bitcoin strategic reserve is implemented and other countries quickly follow suit, it would significantly increase overall demand for bitcoin. This could make bitcoin worth $400,000 per coin within the next 5 years. Just like gold, bitcoin is a decentralized and inflation-resistant asset that might retain value better than USD in some cases.” – Kennan Mell
“We personally are of the opinion that bitcoin or cryptocurrencies in general are most likely to be assigned to the ‘greater fool theory.’ One can question whether bitcoin is actually ‘decentralized,’ as studies suggest that 75% of cryptocurrency volume is on exchanges, while at the same time there is a large concentration/centralization among miners and developers… We believe they are particularly problematic as they are highly volatile… Bitcoin is not widely used in everyday life… Even as a ‘safe haven’ during a panic like 2020, Bitcoin plunged during the depths of the ongoing financial panic.” – Wright’s Research
“The potential for widespread corporate [balance sheet] adoption is especially compelling given the current macroeconomics environment, where inflation concerns remain persistent, and fixed-income yields remain unattractive. MicroStrategy’s (MSTR) success is providing a tantalizing blueprint for other corporations to replicate its strategy in order to protect and even grow their treasury reserves in an era of monetary uncertainty.” – Simple Investment Ideas
“We are in the midst of one of those periodic eruptions of irrationality that brings forth all manner of con men, flimflam artists and fraudsters, determined to separate fools from their money as quickly as possible lest reality close the window of opportunity. In today’s wild west of finance, even conservative investors can get taken.” – Joseph Calhoun
“This is a great entry point. The regulatory environment for cryptocurrencies is much more favorable with the current composition of the Presidency, Senate, and House, but there are other facts that make me even more confident. Bitcoin ETFs already exceed $104 billion in assets and are expected to surpass gold soon, which seems to suggest an influx of institutional investors.” – Multiplo Invest
“The unusual convergence of politics and cryptocurrencies that we have observed lately has created what can best be described as a perfect storm of sentiment-driven market dynamics. Bitcoin’s meteoric rise is driven largely by sentiment rather than fundamentals, a fact acknowledged even by its staunchest proponents. The enthusiasm surrounding Dogecoin, a meme-based cryptocurrency with little intrinsic value, exemplifies this speculative excess.” – TMC Research