Turning back to Bitcoin now, though,
because we have the price within just a few thousand dollars of an all time
high. On surging optimism for the demand.
It just crossed $62,000 in the last few minutes.
We're going to discuss this now with Coinshares adviser Meltem Demirors, who
watches this space very closely. What's the new high?
If we do retest that old high that we saw back in 2021, how much further do we
have to go? I have always been a bit clumsily
scholarly about this, about me. Look, I think right now what we're
seeing this this run up, I'm calling it the most hated rally because we were not
ready for it. It started in November.
A lot of analysts were calling the ETF a cell phone.
Use the fence that did not materialize. Obviously, it's been an incredible
catalyst. 10,000 Bitcoin per day being consumed by
the ETF complex versus only 900 Bitcoin a day being mined.
That's soon going to drop to 450 bitcoin a day with the having.
So the supply demand imbalance here is really profound.
Next key target is 69,000. That was the last all time high that we
hit in November of 2020 to the and 69,000.
I think the air is getting pretty pretty thin.
So I have very high expectations for Bitcoin's performance this year.
What do you think is driving the current performance?
You mentioned supply demand, but it begs the question whether the having is
really already priced in to a large degree.
I think this is a great question. Look what I look at flows, flows, flows.
At Coinshares, we publish a lot of great data around flows.
And now with the new nine Bitcoin ETF, we have a lot of great data around flows
available as well. So if we look at just flows right over
the last almost two months that we've had the Bitcoin ETF, we've seen over $20
billion of inflows, some outflows on the grayscale side, but now we're sitting at
close to 10 billion of net inflows, which is a tremendous amount.
On top of that, if we look at daily trading volume activity in the Bitcoin
ETF last. Yesterday we saw a new high 2.5 billion
traded within 24 hour period. That puts the Bitcoin ETF on par with
some of the largest U.S. equities, large cap stocks.
Now the other thing that I think is really interesting is these crypto.
Are these the client ETFs? They're not offered on every platform.
In fact, there is a huge campaign on crypto Twitter against Charles Schwab
because they're not offering to use these ETFs on their platform yet.
Most investors are not yet accessing these.
And if we look at the recommendations coming from Fidelity, Fidelity on their
investor portal is recommending a 1 to 3% allocation to Bitcoin.
BlackRock and or private events add up to 28%.
JPMorgan published a report 1 to 4% allocation.
So I think what we're seeing is these green shoots of demand are emerging, a
lot of retail coming in, the trades are on the smaller side and I think we're
really yet to see what this untapped demand will look like once these apps
are offered on more platforms. Now, one thing that I'm worried about
here, even though there's all this excitement and enthusiasm around
breaking that new high, do you worry at all that all these retail investors are
buying in at a high? That's a great question.
The one thing I know about Bitcoin is it's really hard to time the market.
This is really true of any asset we talk about.
The other thing I know about Bitcoin, in the ten years that I've been in this
industry professionally, we always see higher highs and higher lows.
So while Bitcoin's volatility has historically been one of the talking
points around why it might not be suitable for every investor, I think
over the last two years what we've seen is increasing volatility across other
asset classes. I mean, look at the volatility we're
seeing in treasuries, even right in in rates like something historically have
been seen. So relatively speaking, I think
Bitcoin's volatility is no longer as great of a concern for investors.
And at the end of the day, the allocations we're talking about are not
so large. And again, I think there's huge, huge
appetite. If we look at stocks, there are all time
highs. So where investors can allocate
allocating couple of percentage points their portfolio to Bitcoin, even with a
bit of volatility just given the supply demand dynamics, does that feel like a
crazy idea? So what does this mean for other crypto
asset classes? I know you're at an event that is
surrounding surrounded around Etherium, for example.
Do they have as bright of an outlook as Bitcoin now?
And are there tokens that perhaps are more appropriately priced to be buying
in at a low? That's a great question.
I don't have token picks for you on this program.
But look, here's what I will say. Bitcoin dominance is a really great
metric to track. So crypto today around $2.3 trillion
market cap Bitcoin is 50% or more of that.
Historically, Bitcoin's dominance has hovered between 45 and 55%, so Bitcoin
still makes up a really large portion of this overall asset class.
What I will say, it's Denver right now. It's one of the largest Ethereum
conferences in the world. A lot of people here, a lot of
enthusiasm, excitement about all the innovation happening in the crypto
space. Next big thing we're looking for on the
institutional allocation side, Ethereum ETF decision coming in May.
A lot of enthusiasm, enthusiasm around that.
And as a result, I think we've seen some momentum in a theory.
Solana continues to be an asset that we've watched very closely.
I'm very enthusiastic about what's happening in the ecosystem.
And then just more broadly, the one asset I always love to look at.
I love my dogs and my frogs that my team and meeting coins are always a good
indicator when the dogs start to run. That's really when we see large scale
retail participation and we're not quite there yet.
