3 Reasons Why Bitcoin Could Hit $10M!

Nico Moran (0:00)

When Bitcoin exploded earlier in September, Bitcoin bulls thought that we were going straight to all time highs. But like Lee Corso, Bitcoin was like, not so fast, my friend. Bitcoin's been in limbo for the last nine days, and it's been waiting for a reason to snap. And it's times like these, when I'm expecting Bitcoin to explode after a major breakout, and it kind of continues to hang a little bit, then I go back to the fundamentals. I go past my own feelings, and I try to gain as much perspective from other people who are smarter than me. And that's exactly what we're going to do today. We're going to look at the Bitcoin bull thesis from fundamental perspectives from three different people, three different macro experts. One predicts that Bitcoin will explode when the dollar breaks. The other predicts that assets over time are just going to begin to flow to Bitcoin. And the other believes that Bitcoin should be a $5-10 million asset class, and he believes that Bitcoin is the new gold for the Internet standard. We got a lot to cover today. This is Dante Coco, Bitcoin Simply. Let's go.

Every day, I'm like, Bitcoin, yo, break out above $80K or be a Jamaican. And every day, Bitcoin is like, cool, bet.

It feels like we've been in this $80K limbo for forever. In reality, we've only been here for eight days. Bitcoin broke $80K on September 18th. Eight days feels like eight weeks when you're looking at the charts and you're waiting for that next parabolic move up. And charts like these don't help. Bitcoin is about to have its second best third quarter performance ever, up 43%. And the crazy part is, after Bitcoin has an explosive third quarter, the fourth quarter is even better. After we saw explosive third quarters like the one we're in now, Bitcoin has gone up 480%, 218%, and 168%.

Bitcoin is trying to break free from the rest of the market like Big X the plug. That means we're having little success, actually breaking out of this leg. Because the rest of the market doesn't look as rosy. Things are seemingly good on the surface, but not so good when you dig a little bit deeper. According to the latest research from Bank of America, the top 10 biggest AI stocks make up 41% of the total market. That's exactly where the.com bubble peaked in 2000 The Bank of America, their stats show that the last major bubbles popped when the 10 year went up 2%. And after this past week, the bond apocalypse, the 10 year is up about 1.3%, so we're not that far to go. And that's why the uneasiness and the uncertainty around the AI trade with global wars still going on in Iran, people are uncertain as to whether Bitcoin can actually break out. This is when I go back to the fundamentals. I skip out on the headlines and I look at the base facts. Take the Argentinian peso for example. Since 2009, relative to the dollar, it's down 99%.

And this is exactly why people Bitcoin. This is what currency debasement looks like in reality. And so, these are other currencies relative to the dollar. But what's happening to those other currencies is actually happening to the dollar right now relative to hard assets. This is exactly why Strive, Matt Cole, their CEO are Bitcoin bulls.

SPEAKER_2 (3:06)

We are perpetual Bitcoin bulls because we think the US government will not fix the debt crisis until something breaks. And so, I guess I would say until something breaks explicitly with the debt crisis in the United States, our view is that probably no Bitcoin price is too high, because we think Bitcoin can effectively go to infinity versus the dollar. It does not mean that one Bitcoin will buy you all of Manhattan, right? There's going to be a real purchasing power of that in this debasement trade that we are in. But we do think even on a real basis, Bitcoin will be worth substantially more than it is today. What has to break? Like you said, until something breaks, like lay out the scenario for us.

Yeah, so the dollar has to break and the dollar has to break because of the debt crisis in the United States. Fiat currencies have to break. This is not a dollar specific problem. It's a problem in Japan.

It's a problem in Europe. It's a problem in China as well. And so the question becomes, when you look at long-term rates is that with the debt levels of the United States today, debt GDP obviously well above 100%, with the spending continuing, the debt continuing to pile up, what would be the natural rate of the 10-year treasury, as an example, if the Fed owned nothing, if the Fed and the Treasury were not intervening? And I think when you combine it all together, you would likely see 10-year yields right now north of 10%. That would be if the Fed didn't own more than 25%, if you didn't have the cent trying to cap long-term rates. And so you have a constrained long-term interest rate on US government debt, and the release valve has to be the dollar. You either can let the free markets decide the rates and then the dollar will remain strong, or you don't, but ultimately what matters is spending. And we know that whether you're a Republican or Democrat, DC does not stop spending.