Bitcoin's got the Trump Pump. Is $100,000 possible?

Trump's election victory has investors salivating at the prospect of a crypto-friendly business environment. The buying frenzy will continue as investors pile on, in the hope of instant riches. The whole thing has the whiff of Tulip mania, and we all know how that turned out.

Some people rightly have concerns that Bitcoin doesn't 'do' anything - there's no yield, no cash flow, just like gold. So one way we've helped clients to gain access to the broader trend is investing in companies that do make money, namely by providing tools and services to the crypto industry more broadly. It's exposure to the underlying trend but with returns derived (at least in part) from real, normal commercial activity. This can pay dividends as long as there is growing interest in and activity in the sector, regardless of exactly where the Bitcoin price is.

I think as long as the Fed keeps rate volatility under control, we will enter a lovely period of disbelief generally. As long as the market isn't shocked by any policy changes, we can continue moving higher, with each marginal buyer gradually getting richer. You can look at x-asset and see ARKK, Cathie Wood's hated ETF, which looks ready for a spring higher, correlating with Tesla's enormous rally over the past week. This is all muy bueno for risk sentiment and the highest beta asset class, crypto. It's going to be a fun rest of the year, for sure (stay long, don't be short).

The notion of BTC reaching $100k at some point is simply that—a notion. It might; it might not. If you know anyone who says it will, ask them to show you their crystal ball!