Although both gold and silver bullion are recovering nicely at the time of writing—with gold cresting above the $1840 USD per oz. mark and silver above $24 USD per oz.—they do continue to be stuck in a trading range, with repeated pressure keeping them from moving to new highs.
(Chart source, goldprice.org)
One market also experiencing continued setbacks only to rally hard into strength is the king of the Crypto markets, Bitcoin, which is once again on red hot fire.
The Rollercoaster Ride Continues
Last week I discussed how Bitcoin had a phenomenal month of gains throughout November only to then suffer a massive correction that sent price tumbling by thousands of dollars in the span of only a few short days.
(Chart source, coindesk)
Fast forward to this week and those losses have been utterly eradicated, as Bitcoin has found its footing in record time and galloped past the $19,000 USD per BTC level, reaching a market cap of over $353.80B at the time of writing.
This is truly mind boggling, as it means that BTC moved from its setback low of $16,490.59 USD on November 26th to its recent rally high of $19,768.15 USD on December 1st—a matter of only five days!
This was an increase of $3277.55 USD per BTC, or 16.5% in gains, in less than one week.
Talk about volatility.
Still, many analysts seem to have faith in this move higher and some are making very lofty predictions. Bloomberg's Crypto department recently stated the following:
“Bitcoin will maintain its propensity to advance in price into 2021, in our view, with macroeconomic, technical and demand [versus] supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap.”
These predictions come largely based on the fact that many investment firms still do not hold a solid Crypto position (with BTC being the first "go to" coin to hold within that space) as well as the fact that only 900 BTC are being mined per day now compared to 1800 per day in 2017, due to the halving that occurred within BTC.
Of these 900 BTC being mined per day, one firm alone, Grayscale Bitcoin Trust, is gobbling up approximately 70% of them, taking the majority off the market instantly.
Also spurring this demand is the stark reality that inflation will be a huge, continued problem in the years to come due to the historic levels of money printing that has occurred—and is still yet to occur—due to the COVID-19 pandemic.
This has many Bitcoin investors worried, and it’s one of the many reasons why they are fleeing into an asset class they believe will offer them protection in the coming days.
Precious Metals Advocate Nigel Farage Joins the Bitcoin Party
Joining in on the recent action and adding some more positive news to the world of Bitcoin is Nigel Farage, the man who many believe "made" BREXIT happen.
In addition to being a renowned politician within the UK and abroad, loved by some and hated by others (depending on which side of the aisle you stand on), Nigel Farage has also been a stout supporter of alternative currencies that compete with the government-controlled fiat based system.
For the past decade, Nigel Farage has appeared on precious metals podcasts such as King World News and many others preaching to the masses about the protection that precious metals can offer and warning of the dangers surrounding fiat money printing run amok.
Nigel has ultimately been correct in many of his predictions and has been proven to be a man who often ends up on the right side of a trade. It is therefore being taken quite seriously that Nigel Farage has not only entered the Bitcoin space but has gone on record saying that he believes in it for the long-term.
In a recent interview with Sam Volkering, Nigel Farage stated the following:
“From the poorest to the richest in the land, one of the conversations that are going on is about cryptocurrency. The reason is all too obvious: it's that governments are, through this pandemic, creating vast amounts of funny money, debasing currencies, and people are scared about what this means for their money, their investments.”
In addition to this, Nigel Farage, ever the anti-establishment type, stated that Bitcoin is the “the ultimate anti-lockdown investment.”
Whether or not Bitcoin will reach the $50K levels predicted by Bloomberg and many other analysts who strongly believe in the Crypto marketplace has yet to be seen. However, at this stage of the game and with this much fiat money printing occurring, anything is possible.
We know for certain that more fiat money creation, more bailouts, and more stimulus plans will be coming throughout the course of 2021 and beyond. The train cannot be allowed to stop, whether or not we are in the midst of a pandemic. The entire house of cards would come tumbling down, and the financial elites cannot risk that.
Alternative assets that are scarce, limited, and suffer from natural supply restraints— such as precious metals, Bitcoin, high end art, and collectibles—will continue to adjust higher due to this historic influx in the supply of fiat money.
I strongly believe that 2021 is going to be an interesting year, one that will shatter many previously set records.
Until then, stay safe and as always, keep stacking.