I manage money the boring way. Cash flow over narratives. Gold over bitcoin. Balance sheets over vibes. If it needs zero rates to work, I don't own it.
Everyone is convinced the Bitcoin bitcoin:native bottom is $60,000.
I'm here to tell you $60K it isn't the bottom, it's the psychological level at which people panic and the real breakdown begins.
Just like May 2022, the real panic begins next week.
The talking heads on TV will claim people are selling BTC to buy SpaceX $SPCX, which is a good story but the truth is the 364 day downcycle ends in October 2026.
The truth is never as interesting as fiction.
$MSTR
@ewarren That's the attitude that's been impoverishing nations for centuries. Good thing for us that you were not around during the Industrial Revolution.
When Bitcoin is back at $20,000 that's still a lot of money to pay for nothing. Don't be fooled by meaningless benchmarks. 84% off a ridiculously high price is not a bargain.
The dollar isn't a monolith. The DXY tells one story, but the TWDI reveals the unseen. Remember the Plaza Accord? Richebacher warned us: debt-financed currency hides reality. Watch the 26-curve—China and Mexico matter. See the divergence in the chart.
Last ten years.
Gold’s largest drawdown? 23%
vs.
Bitcoin -82%, -58%, -65%, -75%, and now near -50% yet again.
A store of wealth holds its value. It doesn’t lose half its value or more every few years.
@KobeissiLetter Buying Bitcoin to hold on a company’s balance sheet isn’t investing, it’s speculation. Buying cheap assets and earning dividends for 30 years beats holding digital tickets that can tank volatility without a cash flow anchor.
@KobeissiLetter Bubbles pop, but sound money holds value. Bitcoin's volatility is a feature not a bug, and it leaves savers holding air while gold quietly keeps its worth.
The Bitcoin chart looks bad, but check out the rest of crypto. The Ethereum chart looks worse, and the Solana chart looks worse than that. Everything looks like it's about to implode. So far, the selling has been very orderly with no signs of panic. That will likely change soon.
If Bitcoin is lower today than it was in April 2021, why should future returns be any better? What could possibly happen over the next five years that is more bullish for Bitcoin than what has already failed to move the needle over the past five years? The party is clearly over!
When I spoke at that conference, Bitcoin was trading near $110,000. I said the conference likely represented the peak of the mania. A blow-off top. So far, it looks like I was right. Attendees who followed my advice and sold their Bitcoin are certainly glad that they did.
Trump promised to make America the Bitcoin capital of the world to win crypto votes and donations while his family cashed in on their crypto ventures. Mission accomplished: Since America squandered the most capital on crypto, America will suffer the most when the bubble bursts.
Serious question for fiduciary $SPCX IPO buyers @ $1.75 trillion:
Musk is 54 and obese, with a history of drug abuse. If he croaks or strokes out (or just has a freak accident) why would anyone pay even $100B for that cash-incinerating company?
The key-man risk is UNFATHOMABLE.
The U.S. semiconductor index $SOX doubling within 1 year has only happened 3 times in history.
The 1st was the 1995 PC boom.
The 2nd was the 2000 dot-com bubble.
The 3rd is the 2026 AI bubble.
In both 1995 & 2000, the vertical surge was the final warning before it collapsed.