BlackRock’s iShares Spot Bitcoin ETF has now surpassed its iShares Gold Trust in assets under management. About a year ago, Larry Fink was still pretty much against BTC and crypto in general, but as we've seen before, people like him can turn 180 degrees when you least expect it.
BlackRock is on track to amass 500,000 BTC under management, which is huge, imo. As I’ve mentioned in many posts, I don’t view BlackRock entering crypto as great news for decentralization. From a fundamental perspective, Bitcoin ownership would be far better distributed across more holders than concentrated in a few centralized entities. But, there’s nothing we can do about it now—I guess it was written in the stars.
The S&P 500 is also performing phenomenally, and you can feel the renewed optimism in the world. After all the stress from COVID and the Ukraine war, and now with Trump re-elected, it’s like the world is turning toward a brighter outlook. Personally, I doubt Trump will heavily influence the broader direction of things, but for the markets, his election was a clear FOMO trigger. He’s promised to fire Gary Gensler and not to sell any BTC in the country's treasury, which is a plus for the industry.
There’s still plenty of sidelined capital, imo, as many investors were waiting for a recession to hit this year. But instead, we're seeing stimulus funds injected into the Chinese economy and interest rates dropping in the U.S. and worldwide. Cheap money is back, and it’s flowing into risk assets quickly. The crypto market has responded well to the U.S. election results, and it’s not just Bitcoin that’s up—my meme coins are 80-90% up in a day. Some are calling it a “meme supercycle,” but I disagree.
MEMEs have had their moment this cycle, but once BTC holds above its previous ATH for a couple of weeks and ETH escapes “goblin town,” we’ll be entering the mania phase, just like every bull market cycle. That’s when the big money comes in—unless, of course, you make the mistake I did in 2017 and 2021 by over-trading and missing out on potential life-changing gains because of impatience and lack of conviction.
Everyone knows HODLers outperform day traders in the long run, but HODLing isn’t easy. You need diamond hands, an exit plan, conviction, set targets, and solid risk management. Just avoid over-trading. Whatever you’re holding will pump eventually, even if it seems dormant now. If you overtrade, you could end up with a portfolio that hasn't gained in dollar value, despite lots of activity.
The goal isn’t to trade as much as possible; it’s to get the most out of the simplest strategy there is: buy low, sell high. We’re not there yet, but euphoria is right around the corner—believe me.
That’s all from me for now. Have a great Saturday, and see you all next time.
Thanks for your attention,
Adrian