🚨 Crypto is ripping. Here's why 👀

GM everyone. This is 2036. We scroll for gems all day so you don’t have to.

Here’s what we’re serving up today 🍲: Bitcoin crossed $35,000 last night. It’s up over 20% this week alone. What’s causing this pump?

Let’s dig in.

Today feels like an early Christmas 🎄.

Bitcoin crossed $35,000 overnight. Solana is up +200% year to date. And even ETH has recaptured $1,800.

There’s green everywhere ✅.

A lot of people have theories about what’s going on.

We’ve gone through most of the ones that matter.

Here’s what you need to know:

1/ Last week, fake rumors spread that Blackrock’s Bitcoin ETF had been approved.

Bitcoin went from $27K to $31K in 15 min.

Everyone realized the Bitcoin ETF is not priced in.

We’ve all known it was coming. But the bitcoin price doesn’t yet reflect billions of institutional dollars pouring in.

Last week, investors realized they could still front-run the institutions.

And yesterday, Blackrock’s Bitcoin ETF was listed in the NASDAQ’s trade registry. It’s getting ready to trade.

i.e people are scrambling to buy bitcoin before Blackrock.

This is happening at the same time as…

2/ High interest rates are destroying traditional financial markets.

Last week, mortgage rates hit 8% in the US.

10-year US government bonds yield 5%.

And banks are sitting on hundreds of billions of dollars of losses. Bank of America alone has a $131 BILLION hole in their books.

Only 7 stocks in the S&P500 are up this year - all in technology.

With inflation and geopolitical uncertainty, investors are seeking safety - like gold, and now bitcoin.

High interest rates should crush the price of gold. But it’s still hovering just under $2,000.

And this is happening at the same time as…

3/ The beginning of the bitcoin halving cycle.

Crypto moves in 4-year cycles, dictated by the halving that cuts bitcoin miners’ rewards in half.

Every single halving has been followed by a steep bull market in bitcoin.

Everyone is ready for the next halving, which will take place in April 2024.

But every time, investors tend to front-run the halving and push up prices well before it happens.

And this is happening at the same time as…

4/ Investors are dying for a new bull market.

The crypto winter lasted two years. It was brutal.

Investors left the space, VC funding dried up, and lots of companies went bankrupt.

95%+ of NFT projects went to 0.

And there’s only so long markets can be down.

Everyone is ready for the next bull market. There are no sellers left.

And this is happening at the same time as…

5/ Investors are massively underweight risky assets.

The consensus view going into 2023 was that a recession was here, and investors should invest in bonds and avoid risky assets like stocks.

Turns out - bonds are down between at least -20% this year.

At the same, the highest-risk assets are up only:

• Nasdaq +32%

• Bitcoin +105%

• Ether +51%

• Solana +200%

All the “experts” were wrong.

Remember, most money managers can’t sit on the sidelines in cash. They have to buy something and generate returns.

They just bought the wrong things.

Now, they have two months to catch up and generate some positive returns before the end of the year.

We’re not saying they’ll all buy technology stocks and other risk assets (like crypto if they can).

No one has a crystal ball.

But the OG crypto investors - Pantera Capital - predicted bitcoin would reach ∼$35,500 by the halving next year in April.

Turns out we’re six months early.

Make of that what you will.

And enjoy all the green today.

1/ Bitcoin crosses $34,000 on hopes of ETF approval

2/ Blackrock takes new step in Bitcoin ETF prep

3/ Memecoins are back