$50K is Different This Time

Bitcoin has been above $50,000 per coin for less than 150 days in its entire existence. 

That means less than 2.5% of Bitcoin’s life has been spent above the $50,000 mark. 

With financial institutions gobbling up Bitcoin at a rate far higher than the Bitcoin network produces daily, the price of Bitcoin has not only rebounded but soared to heights not seen since 2021. 

With this rapid increase in price, it’s important to realize that a price point of $50,000 per coin today is dramatically different than in 2021 with the same price. 

Let’s look at the differences:

The last time Bitcoin was at this price there were bad actors at work manipulating what the market looked like:

• FTX was selling paper Bitcoin and spending consumers’ assets. 
• Terra and its LUNA token was an active Ponzi. 

Billions of dollars were lost from the industry and consumers when these schemes finally came to light. The fallout from them helped start a bear market where Bitcoin plummeted to depths around $14,000.

Today, these actors and the results of their actions have nearly been flushed out. 

Bad actors aside, Bitcoin at $50,000 in 2021 was vastly different than today. 

Back then, people were buying $GBTC at a premium as TradFi’s only real exposure opportunity to Bitcoin. These same people watched as the asset they bought at a premium went to a steep discount to the price of Bitcoin as the bear market roared. 

Now?

Leading financial institutions like BlackRock, Fidelity, and 9 others have Bitcoin Spot ETF products that are breaking ETF records only a month after their launch. Wall Street has 10 years of pent-up demand and the daily volumes flowing into these products show exactly that. Wall Street is behind Bitcoin today in ways that weren’t possible in 2021. 

The institutions are finally here.

The current holders of Bitcoin are also different. There have never been more long-term holders of Bitcoin than there are today. Approximately 79% of Bitcoin hasn’t moved in 6 months or longer. With ETF inflows being more than 10x the amount of new Bitcoin entering circulation via the mining network, demand far outweighs the supply. The only possible outcomes are either retail holders sell to the financial institutions, or they hold and the price skyrockets as the supply of Bitcoin on the open market continues to dwindle. 

Socially, the news cycle and public awareness of Bitcoin are very different as well today compared to 2021. At the time of the last Bitcoin all-time highs, we had FTX shelling out millions to name a basketball arena and millions to partner with athletes like Tom Brady and Steph Curry. We also had crypto.com commission Matt Damon in their famous “Fortune Remembers the Bold” Super Bowl commercial. 

Bitcoin and the subsequent crypto industry were in the spotlight. 

Now? 

Silence. People aren’t talking about Bitcoin like they were the last time Bitcoin was at these prices.

Another pivotal difference between the last time Bitcoin was at $50,000 and now is the upcoming halving projected to occur in about 2 months. The last time Bitcoin was at these prices was AFTER the halving had already occurred. We are seeing these prices in the build-up to when the halving occurs. 

The bad actors are gone. 

Wall Street has entered the game. 

Diamond hands have increased in volume and continue to be made of diamond. 

The halving is rapidly approaching. 

There is no fake noise, chatter, and fluff surrounding Bitcoin now. 

There is only heavy demand and an increasingly limited supply. 

50k today isn’t what 50k was like last time. 

50k today is a mere pit stop for the new heights Bitcoin will reach. 

Keep stacking SATs.

The views and opinions expressed here are for entertainment purposes only and should, in no way, be interpreted as financial or investment advice. Always conduct your own research when making an investment or trading decision, as each such move involves risk. The team members behind Triana are not financial advisors and do not claim to be qualified to convey information or advice that a registered financial advisor would convey to clients as guidance. Nothing contained in this e-mail/article constitutes, or shall be construed as, an offering of financial instruments, investment advice, or recommendations of an investment strategy. If you are seeking financial advice, find a professional who is right for you.