Bitcoin flips Silver as it breaks above $71,000 for the first time Ever
It's a milestone that Bitcoin has seen often since the beginning of March. It was only Friday afternoon when Bitcoin broke above $70,000 for the first time ever. Among the catalysts -> uk's financial watchdog said on Monday it will now permit recognised investment exchanges to launch crypto-backed exchange-traded notes, the latest regulator to pave the way for digital asset trading products. Theses products would be only available for professional investors such as investment firms and credit institutions authorised to operate in financial markets, the Financial Conduct Authority (FCA) said in a statement. Source: Decrypt, www.cnbc.com
Data Centres + AI + Crypto + General Power Consumption increase.
Where will all the extra electricity come from? Source: Bloomberg
Capriole has developed a model to calculate the intrinsic value of bitcoin as determined by energy spent.
The current intrinsic value based on this approach is close to $81,000. Some highlights of this methodology: - Energy, raw Joules alone, can be used to estimate Bitcoin’s fair value - Increased energy input increases the fair value of a Bitcoin (and vice versa for decreases) - Bitcoin’s price is mean reverting to its Energy Value - The Energy Value model states that if all miners were to stop mining Bitcoin tomorrow, the power input would be zero and Bitcoin would be worthless This approach might be of interest for Pershing Square Capital Management founder and CEO Bill Ackman who turned some of his attention to Bitcoin on Saturday afternoon, cheekily suggesting a scenario in which the price for the world's largest crypto could soar far higher than anyone might imagine. "Bitcoin price rise leads to increased mining and greater energy use, driving up the cost of energy, causing inflation to rise and the dollar to decline, driving demand for Bitcoin and increased mining, driving demand for energy and the cycle continues," said Ackman in a post on X. "Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses," he continued. "Maybe I should buy some Bitcoin." "The problem of course is that it also works in reverse," he later added. https://lnkd.in/eEd7D9gw Source: Capriole.com, Charles Edwards
The decade of India?
India inks ‘watershed’ $100 billion free trade deal with four non-EU nations. India will lift most tariffs on several sectors with Switzerland, Iceland, Norway and Liechtenstein in a free trade agreement. New Delhi expects the agreement to generate $100 billion worth of investment over 15 years and 1 billion jobs in the world’s fifth-largest economy. https://lnkd.in/eTG7n-ZW Source: CNBC
Bitcoin rallied 346% from its low in November 2022 to hit a new all-time high last week, its first new high in 846 days. $BTC
Source: Charlie Bilello
A "Goldilocks" us job report -> risk assets
Gold and digital gold rally after a soft US Jobs report. February Non-Farm-Payrolls beat estimates with 275k new jobs BUT 2 months revisions look notable with -167k. Unemployment rate rose to 3.9% from 3.7% and hourly earnings weaker than expected w/+0.1% MoM. January’s blow-out release has been relativized. Source: HolgerZ, Bloomberg
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Energy dependence and independence summarized in one chart
Source: JPMAM
P/E expansion explains recent S&P 500 rally
Source: Goldman Sachs, TME
