“NOW Is The Time To Go ALL IN On Crypto” Kevin O’Leary INSANE New Bitcoin, Ethereum and Crypto Market Prediction
Let me suggest a different reason to start going long bitcoin which has nothing to do with foreign currencies but a lot to do with policy in the united states there’s a bill there’s two bills floating around but let’s talk about the one that has the chance of actually getting passed in the u.s after november 8th which is the midterm elections it almost went to
Markup last week it’s called the stable coin transparency act now this has nothing to do with bitcoin but it has a lot to do with the tone of regulation and the reason i think it’s interesting is they’re trying to solve for the challenges that occurred in these collapses of stable coins that were built around algorithms 62 billion got erased the regulators got
Upset about that although the majority of that capital because it was decentralized was in other countries but this act is very simple in nature which is why it may pass it’s being supported by both parties and the reason that’s the case is that it makes effectively the us dollar the default payment system worldwide which everybody can get behind so if you have
Usdc or any other stable coin that’s backed by the dollar and the test to get it regulated is very simple you’re going to get audited every 30 days it has to be backed up one to one with a dollar or treasury bill all the treasury bills backing the coin or the token have to have a duration of less than 12 months and if you’re willing to go through that scrutiny
They’ll they’ll issue you a license now if that were to happen and it may happen very quickly after november 8 if the house flips and that’s the anticipation is house flips nobody knows what’s going to happen in the senate that’s a coin toss but even though it has nothing to do with bitcoin that’ll be the first regulation passed by u.s regulators and i would argue
You want to be long bitcoin going into that outcome so if you own stable coins you’re going to see a lot of interest in institutional capital coming into let’s say usdc and circle circle by the way took in 200 million dollars in fidelity and 200 million from blackrock a few weeks ago in a series f at a 9 billion valuation they got 54 billion of coin so end of the
Day regulation comes bitcoin goes up and i agree with your thesis that it’s a good asset to have if you’re an account in a country where you’re asked your currency is collapsing but if institutions smell policy then you’ve got a real move up and that’s when you break out of this 19 000 to 22 000 trading range against the us dollar i think it goes right through that
Very quickly kevin o’leary believes that now is the time to be accumulating crypto and has high conviction that various catalysts coming up over the next six weeks could be what pushes the market out of its trading range and back to higher highs in his latest interview o’leary sat down with a panel of crypto experts to explain why he believes investors need to be
Adding a basket of bitcoin ethereum and crypto to their portfolios and what will spur the market into a new bull run make sure to stick around to the end of the video where odliri gives his lay of the macro landscape and at what point he envisions a fed pivot also only it’s more percentage of my viewers are actually subscribed if you enjoy finance content consider
Subscribing or liking the video it’s free and you can always change your mind but here’s a question for every investor to think about there’s a risk in investing in bitcoin and all crypto there’s also a risk of not investing in it because if it’s true that it becomes the 12th sector of the s p in the next decade some of the value in financial services stocks like
Banks like money center banks are going to transfer to these new technologies and you simply don’t know when that’s going to happen so my thesis is you should have some crypto in your portfolio because you don’t know when that’s going to occur and if you if you completely don’t have exposure to it you may miss participating in the growth of this 12th sector the s
P which would be a bad outcome for performance how much of your portfolio is currently encrypted it was 20 before the correction it’s now 16.2 we monitor it every day just like we do stocks we’re having a very hard time with our auditors and internal compliance people because it doesn’t act like inequity it doesn’t act like a bond it trades liquid 24 hours a day
So mark to market means nothing at 401 in the afternoon so we’re constantly monitoring that but i’m not the only person that has this view we are adding to that position because in the way we manage our operating company’s portfolio we can have any sector up to 20 but no more than five percent in any one position so given that we have a lot of different positions
And we just put capital work in mistin last week that project that came out of facebook we’re always looking for new projects because we simply don’t know which ones are going to survive but we don’t need them all to survive we just need a portion just like venture investing but crypto is going to cause a lot of disruption in my view in financial services which is
A large sector of the s p so if you don’t invest in it you also have the risk of missing that transition we’re constantly rebalancing as we do at the end of every 30-day cycle we look at our positions not just in in bitcoin and crypto but across the portfolio fixed income has been as challenging as stocks they’ve gone down just as much in the last 18 months so it’s
Been a very difficult time for every asset class we can’t own more than five percent of the operating fund in bitcoin you just simply don’t know when these asset classes are going to move i have a personal speculation around regulation i talked about that earlier that if the stablecoin act gets put into law that will be a signal that all crypto will be regulated at
Some point some people feel good about regulation others don’t but here’s a fact to consider regardless of your position most of the sovereign wealth funds that i work for as an indexer have zero position in crypto of any kind when you ask them if they’re going to buy anything they want the granddaddy which is bitcoin they’re willing to put 50 basis points to one
Percent into bitcoin when their compliance departments allow them to and that won’t happen until the sec rules on it as a commodity or or a security and the reason they can’t is that these sovereign wealth funds i don’t care if you’re norway or your uae or saudi the majority of their money is put into the s p it’s the only market that can absorb a billion dollars
In one trade without moving the market and that goes in around 1005 every morning when these sovereign wells take their 250 million that they make in oil each day out of new york these these transactions remember oil is transacted in us dollars and they put it into an index of the s p x oil x airlines because they own their own airlines and they have enough oil
Obviously but the reason they won’t buy bitcoin is they can’t go uncompliant with the sec that’s the number one depository for their capital so until the sec makes a ruling on what bitcoin is they won’t participate now here’s the upside 50 basis points in the sovereign wealth and pension world is a trillion dollars of buying so you have to be voting and cheering on
Regulation you put a trillion dollars into bitcoin that’s when you might see it at 60 to 100 000 valuation and those funds don’t care once they index it they’re the automatic bid when it dips below the 50 basis points at one percent they’ve decided to own and they sell into strength so there’s a really really liquid market about to happen that’s very optimistic
For bitcoin not pessimistic i really don’t understand when people say oh i hate regulation and decentralized asset you want regulation because that’s where the money is well it’s kind of interesting from the macro perspective if they lose the house and they keep the senate what you get is gridlock there’ll be no more spending bills for the next two years because
There’ll be nothing done in washington in that situation nation which is good for the markets for the equity markets remarkably it’s kind of indifferent for bitcoin and crypto because what you find in all of these bills is bipartisan support which is really something else you you look at hagerty and gildebrandt that’s their bill which contemplates bitcoin as a
Commodity and it deals with nfts and lots of others but there’s 21 bills floating around the senate and the hill and they’re all bipartisan so it doesn’t really matter what happens the only reason there’s no crypto policy is everybody’s focused on november 8th but when when they sit again in the back end of the year and they come back from holiday they’re still
Supporting crypto most both parties like the idea of some regulation on crypto so it’s more about the gridlock of getting no more spending bills that may the market may like because most of market participants have seen enough spending i mean it’s just we you know we first we did the six trillion and then we did the anti-inflation act which was very inflationary and
Then we gave the students back all their debt which is nuts and so everybody’s sick of the spending i think that’s the opportunity for equities doesn’t really change the outcome of bitcoin that will one day be regulated the way i read it was the fed’s going to raise rates 75 basis points there’s no question they’re going to keep going you’re printing and inflation
Cpi number of over eight percent but no one knows though is how much of this inflation is caused by supply chain issues because you know i’ve got a pretty good lens on supply chain issues i have 54 private companies in our portfolio everything from gym equipment to greeting cards commercial kitchens wireless charging you name it we’re involved and when we talk to
The ceos of these companies they’re still having a really hard time let’s just take the gym equipment company in fargo north dakota we used to get our medal from asia we can’t get it anymore we can’t get it through the port in los angeles we have to make the barbells and all the gym equipment in the u.s cost 30 percent more we passed the price on to the consumers
They’re still buying it and that’s inflation now as soon as we get the supply chain thing worked out we’ll be dropping prices but we haven’t been able to get it worked out yet so i think half the inflation frankly from my point of view is this temporary supply chain but i don’t know how temporary it’s going to be i’ve been waiting a year now to fix just the gym
Equipment story and it hasn’t been repaired yet what point do they indicate that they’re going to stop because another 75 basis points already anticipated in the two-year well four and a half percent on 24 month money the stock market is fibulating it’s it’s having a lot of volatility the vix is trying to figure out the moment the fed causes and so this is the
Interesting challenge what happens in these cycles and this is always a challenge and we have a good example of in recent times 2020 in the middle of pandemic total chaos around the world and the markets the stock market actually did quite well because it was all this qe coming into it this quantitative support and the fed printing money but all of the returns 95
Of the returns came in basically 18 trading sessions 18 eight hour periods where you had that volatility 2000 points up 2 000 points down you just didn’t know which day those up days occurred and so if you were trying to time the market you missed the entire returns of the year the same thing is going to happen here as soon as people figure out or feel or just get
The tone from the fed that they’re going to take that pause you’re going to have a violence swing up in the market and if you’re not in the market that day that’s half your return turns you’ll miss it’ll happen in a few days and so you know everybody tries to time the market it’s impossible everybody learns the hard way i did years ago so i stay the course i try
And add a little bit on down days into just an index i use a broad index of both mid cap and large cap stocks that alps put out you know in shameless intelligence ousa and ousm but those indexes are 300 really high quality stocks in the u.s that pay dividends and they’re violently volatile except yesterday was crazy up so you and if i’m glad i was in the market
Yesterday same thing could happen today you just don’t know timing is impossible and this volatility makes everybody squeamish
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"NOW Is The Time To Go ALL IN On Crypto" Kevin O'Leary INSANE New Bitcoin & Ethereum Prediction By Jamie Tree
