Michael Novogratz sees Bitcoin new highs due to a new Exchange Traded Fund ETF anticipated approval by the US Security and Exchange Commission in 2024.
An ETF in 2024 would result in capital flows from institutions, which could push the largest cryptocurrency by market capitalization to new highs.
If an asset survives a market downturn during a credit-tightening cycle, then that is caused to be bullish when the credit cycle hits a trough and moves to ease.
“An ETF in 2024 would result in capital flows from institutions, which could push the largest cryptocurrency by market capitalization to new highs”
WEALTH TRAINING COMPANY
Central banks can not continue with a tightening policy without triggering a systemic crisis in the bond market, and real estate and blowing off the collateral chains of the entire banking system.
The five bank failures in 2023, the latest Citizens Bank, touches the surface of what would lie ahead if central banks keep tightening.
A tsunami of mortgage defaults in commercial and residential real estate could play out in 2024 as millions struggle to service their mortgage payments at existing interest rates.
The current Repo Rate sits at 5.39%, near an all-time high.
The Repo market provides day-to-day emergency funding for banks so that they can honour their payment obligations
A near record high Repo Rate of 5.39% suggests demand for the Fed’s emergency credit is in high demand. Reading between the lines, banks are experiencing liquidity stress.
“There is an old saying; if it is that important, lie about it”
WEALTH TRAINING COMPANY
Further tightening would decrease the value of prime collateral, and treasuries, and global contagion would follow, putting the entire Western banking system into a perilous state.
There is an old saying; if it is that important, lie about it.
Our fifty cents is that inflation data will be cooked in 2024.
The meaningless core inflation figure, which excludes housing cost, food and energy, will be touted by the mainstream as the reason to celebrate the central bank’s success in controlling inflation.
Even the parroted mainstream narrative, “tighter for long” is being discounted as the market anticipates rate cuts in 2024, as early as May.
“with war, and the rise of people attempting to flee conflict and move their assets, cryptocurrencies are a valuable tool” – Wealth Training Company
Michael Novogratz sees Bitcoin new highs in a hyperinflationary downturn
Everything households need to survive could see prices going higher in 2024.
Capital flows into inflation hedges could accelerate in 2024.
Defence stocks offering essential products and services are a good inflation hedge, the caveat being government price controls.
Deteriorating geopolitics is another reason Michael Novogratz sees Bitcoin new highs
Try moving gold in a war zone, and even in the best of times, precious metals are not easy to move across borders due to metal detectors.
So with war, and the rise of people attempting to flee conflict and move their assets, cryptocurrencies are a valuable tool.
Moreover, if the holders hold the private keys, there is no third-party counter risk. Banks and exchanges could all collapse, but if the crypto investor has custody of their private keys, they can access their cryptos anywhere in the world with a computer and internet connection.
Even in a limited nuclear war, in Europe or the Middle East, if the crypto holder survives by fleeing, they can access their cryptos in New Zealand.