Crypto Bull Market in '21?
I have been trying to put together all the puzzle pieces and I believe we will see a massive Crypto Bull Market in '21 - Disclaimer - I am NOT a financial advisor nor is this financial advise!
How I came up w/ my belief - IF we just review the items at a Macro level, I think the US Equity markets (Stocks & Bonds) will take it in the shorts regardless who wins the pending US Presidential Election perhaps its just due to the uncertainty as I am NOT seeing any election influence priced into the US Equity markets.
The next major influence is the stance the US Central Bank has taken w/ Near Zero Interest rates or negative rates. A motto, I always love, is money flows to where it is treated best and I believe Crypto's treats money well. To add another benefit is that fact that investors know their is a finite number of Coins/tokens that can be created bringing back the forces of supply and demand.
What about Venture Capital Firms selling now to avoid potential Capital Gains taxes? This could spark a huge sell off!
Think about a Tsunami of money what will be put to work as more and more Americans wake up to the fact that the World's Currency has been debased and they need somewhere to put their investment money to work. Making matters worse is the worlds currency the $ is being utilized less and less globally for trade; which is an event known as dedollarization.
Dedollarization is not a new event its been taking place for years and gets more severed each day. '18 Shanghai International Energy Exchange launched a crude oil futures contract denominated in Chinese yuan. Other major dedollarization events include India & Russia using their National Currencies For Defense Deals To Bypass US Sanctions or the 800-pound gorilla China, developing a system to replace US Based SWIFT - called China International Payments System (CIPS) (aka China Swift). To compound matters dedollarization will be much worse when the World stops using $ and those $ come home to roost (i believe it would cause a hyper-inflation event).
I am striving for 5% of portfolio being placed into Crypto's to use as a hedge for the dedollarization efforts and might add more to assume the $ will be replaced by CBDC in the next 3-5 years
In summary, I think that in short order Americans will realize there a little to no investment options available outside of the Crypto realm! Therefore driving Crypto's into a '21 Bull Market!
Disclaimer - I am NOT a financial advisor nor is this financial advise!
Enjoy the Journey!
