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Market Moves Yesterday
S&P 500 @ 6,086.49 ( ⬆️ 0.61%)
Nasdaq Composite @ 19,735.12 ( ⬆️ 0.97%)
Bitcoin @ $103,246.80 ( ⬆️ 4.55%)
Hey Scoopers,
Happy Thursday! Here’s what we’re covering today 👇
👉 Bitcoin storms past $100k
👉 What next for crypto investors?
👉 Is it time to book profits?
So, let’s go 🚀
Bitcoin Continues to Rally
The price of Bitcoin soared past the long-awaited $100,000 benchmark for the first time ever late Wednesday evening.
According to Coin Metrics, the flagship cryptocurrency was last higher by more than 4% at $103,246. Bitcoin is now up more than 140% in 2024 and 48% since the election.
The move came hours after President-elect Donald Trump announced plans to nominate Paul Atkins as chair of the Securities and Exchange Commission, fulfilling perhaps his most important campaign promise to the crypto industry: to replace Gary Gensler, who has become something of a villain in crypto for the agency’s regulation-by-enforcement approach to the industry under his leadership.
It’s a day of celebration for longtime bitcoin investors, who have held on for dear life, or “HODL’d” through several of the cryptocurrency’s boom and bust cycles, during which government and financial institutions remained dismissive — and even hostile — toward the asset class.
However, in recent years, the industry has demonstrated Bitcoin's value to the investing world. BlackRock, Fidelity, Invesco, and other asset managers launched the first spot Bitcoin ETFs in early 2024, marking the digital asset's IPO moment.
Bitcoin Soars Past $2 Trillion!
Bitcoin’s monstrous rally has meant the digital asset is now worth more than $2 trillion by market cap, making it the seventh largest asset globally.
Source: CompaniesMarketCap
Bitcoin was launched in 2008 and is a decentralized digital currency, meaning no central authority regulates it.
More than 19 million BTC are in circulation today, but the maximum supply is capped at 21 million. Due to this limited supply, Bitcoin is viewed as a store of value and is considered a form of digital gold by several investors.
Bitcoin has several advantages when compared to traditional fiat currencies, which include:
Decentralization: Bitcoin operates a decentralized network of nodes, meaning a single entity does not control it. This enhances security and reduces the risk of manipulation. Basically, users can transact freely without third-party interference.
Security: Transactions on the Bitcoin network are secured, as they are recorded on an immutable public ledger, which makes it difficult to alter records.
Privacy: Users are identified by wallet addresses, reducing the risk of identity theft compared to legacy banking systems.
Lower Transaction Costs: Bitcoin transactions are cheaper than traditional banking systems, especially for international transfers.
Can You Value Bitcoin?
Several experts, including Warren Buffett, believe Bitcoin has no intrinsic value, making it difficult to value cryptocurrencies using traditional metrics and ratios.
While companies listed on the stock market generate sales and cash flow, Bitcoin is still at a stage where it is viewed as a store of value.
One popular way to value Bitcoin is using the Stock-to-Flow (S2F) model. Here, you treat Bitcoin as a store-of-value commodity similar to gold, silver, or platinum.
The S2F model calculates Bitcoin's scarcity to arrive at a valuation for digital assets. To do so, you need to divide the current supply of Bitcoin by the amount of new production that comes online year after year from miners and then plug the number into a simple formula.
The S2F model has two primary inputs: the total amount of BTC in supply and the rate at which Bitcoin is currently being mined.
More than 93% of all Bitcoin has already been mined, and the last BTC will be mined in 2140. So, less than 7% of the remaining BTC will be mined in the next 115 years. This scarcity will increase BTC prices over time, making it a top investment choice for long-term holders.
According to the S2F model, BTC prices will rise to $1.2 million by the end of 2025, indicating an upside potential of almost 12x from current levels.
As the above chart shows, BTC prices have surpassed their intrinsic value several times due to highly bullish investor sentiment. However, it has also traded significantly below its S2F value during bear markets.
Market participants may be pleasantly surprised if BTC prices surpass the $1 million threshold in 2025. Alternatively, I expect BTC prices to at least 2.5x from current levels.
This Smart Home Company Hit $10 Million in Revenue—and It’s Just the Beginning
No, it’s not Ring or Nest—it’s RYSE, the company redefining smart home innovation, and you can invest for just $1.75 per share.
RYSE’s patented SmartShades are transforming how people control their window shades—offering seamless automation without costly replacements. With 10 fully granted patents and a pivotal Amazon court judgment safeguarding their technology, RYSE has established itself as a market leader in an industry projected to grow 23% annually.
This year, RYSE surpassed $10 million in total revenue, expanded to 127 Best Buy locations, and experienced explosive 200% month-over-month growth. With partnerships in progress with major retailers like Lowe’s and Home Depot, they’re set for even bigger milestones, including international expansion and new product launches.
This is your last chance to invest at the current share price before their next stage of growth drives even greater demand.
Should You Book Profits Right Now?
While I am a long-term Bitcoin bull, I have not plowed all my savings into this disruptive but highly volatile asset class. Currently, BTC and other cryptocurrencies account for 12% of my net worth.
It's essential to consistently book profits and rebalance your portfolio to benefit from diversification, which lowers overall risk.
While selling Bitcoin after its breathtaking rally might seem attractive, it has historically experienced a four-year bull-bear cycle, and crypto experts say the ongoing Bitcoin bull cycle will end around November 2025.
Given these factors, I intend to sell 1/3rd of my Bitcoin around October 15 next year and regain exposure around the start of 2027.
P.S. This is an investing strategy that I am trying out for the first time, which is purely based on historical trends. I hope I am right.
Follow me on my personal X (Twitter) handle to gain daily insights on Bitcoin, stocks, and investing.
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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.