Why Bitcoin Could Hit $100,000 This Year

Eric Wade's case for $100,000 bitcoin... The craziest thing you can do with your money... This 'reboot' is a likely catalyst... How the best crypto investing works... A free recommendation... Elsewhere in inflation hedging...

This morning, Crypto Capital editor Eric Wade made his case...

In a brand-new free presentation, Eric shared why he thinks a "Melt Up" is coming in cryptocurrencies... why he expects the price of bitcoin, the world's most popular crypto, to hit $100,000 sometime this year... and why many other smaller, lesser-known cryptos could soar by thousands of percent starting later this month...

As Eric explained this morning, the catalyst is a bitcoin "reboot" that's happening in a matter of days... and it will strengthen the crypto's position as the "ultimate alternative to the U.S. dollar."

That's right, this bull run in bitcoin – and many other lesser-known cryptos – has a lot to do with inflation, the Federal Reserve, and U.S. government spending that has gotten unimaginably out of hand. As Eric said...

The Fed has done nothing but inflate away the U.S. dollar since 1914. Meanwhile – our government has borrowed so much money that we are now paying almost $1 trillion a year, just to cover the interest on our debt.

Through all this printing and borrowing, our government has quite literally destroyed the U.S. dollar. And that's why I believe the craziest thing you can do with your money is to not consider alternatives, like crypto.

And as Eric explained, there's no better time to get into the crypto sector. So make sure you check out his free presentation...

The 'reboot' catalyst...

The reboot Eric spoke about is the fourth in bitcoin's relatively short history. And it has proved to be a massive spark for higher prices each time. Bitcoin soared by an average of more than 4,000% after each of the past three reboots...

This is by design. This reboot – baked into bitcoin's code – was invented "for the sole purpose of doing the opposite of the Fed and keeping the supply at a fixed number," Eric said.

Now, think about what we've been talking about in the Digest over the past few months. The Fed seems intent on cutting interest rates and weakening the relative strength of the U.S. dollar, all while inflation numbers have been reaccelerating. Even if the pace of rising prices slows ahead, as long as fiat currency exists, inflation is sticking around.

Meanwhile, bitcoin has recently been trading above its previous all-time highs of 2021 and hit a new all-time high of around $73,000 before pulling back to around $69,000 today...

The longer bitcoin trades above its 2021 highs, the more it looks like those previous highs have turned into technical "support" rather than "resistance," which means there's more upside potentially ahead.

Eric expects sentiment around bitcoin to take off again later this month with the reboot. That's why he thinks bitcoin could hit $100,000 later this year, even after recently hitting a new all-time high... being up 56% since the start of the year... and up nearly three times since last summer. As Eric said today...

The crypto rally that we've seen this year is just the beginning.

That goes for the "headline" cryptos like bitcoin and Ethereum, plus many lesser-known "altcoins" you probably haven't heard of that could rise by thousands of percent...

For example, the last time there was a reboot like this, in 2020, Crypto Capital booked 10 different 100%-plus gains, including a 10X return in just 36 days on a crypto called Frontier.

How the best crypto investing works...

With big potential gains in a young asset class, there's risk, of course.

That's why, as we said yesterday, the key to these Melt Up periods – in stocks, cryptos, or anything else – is to get positioned the right way before the crowd and then know when to take profits. Eric reiterated this idea in his presentation today, saying...

You have to know which coins to buy... and then, when to sell... to potentially book those ridiculously high gains. Because these cryptos can be risky – and most folks don't know how to handle risk.

Eric does. A few weeks ago, he told subscribers to book a 219% gain in just 35 days on an "AI crypto" that he recommended. For further evidence, you can see Eric's biggest winners in our Stansberry Research Hall of Fame.

So click here to watch Eric's brand-new free presentation to get the details on what he sees coming for cryptos next... how he suggests positioning yourself for the biggest possible gains this year... and why this could be the "last and biggest mania" in cryptos we ever see.

Eric gives away the name of one of his favorite coins today for anyone who tunes in, and he interviews the man who actually created the crypto. That's just a taste of the unparalleled work that Eric publishes in Crypto Capital.

Elsewhere in inflation hedging...

We've discussed gold's run higher over the past few months and why indicators suggest the bull market in the centuries-old inflation and "chaos" hedge is far from over.

Our Commodity Supercycles team took a look at gold in their latest issue, published yesterday, and explored why "investors and central banks are turning to gold today" and causing prices to skyrocket to all-time highs at around $2,340 per ounce...

In part, as editors Brian Tycangco, Bill McGilton, and Whitney Tilson explained...

The Consumer Price Index ("CPI") has been hovering between 3% and 3.7% since last June. That's far lower than the painful inflation in 2021 and 2022. And investors are betting the Fed will start cutting interest rates in June as a result.

Investors tend to prefer government bonds over gold when yields beat the rate of inflation. But when that's no longer the case, they turn to gold.

The yield on 10-year Treasurys is currently around 4.4%. The CPI shows a rate of inflation of 3.2% for February. That means real interest rates are currently around positive 1.2% (the 10-year U.S. Treasury yield of 4.4% minus the 3.2% rate of inflation equals positive 1.2%).

The Fed will likely cut interest rates faster than the rate of inflation falls from here. This will cut into positive real rates. And it will likely result in negative real rates in early 2025.

In short, the Fed telegraphing rate cuts to come, even as inflation numbers have reaccelerated the past two months, has been a tailwind for gold.

Our Commodity Supercycles team shared more details, including a look at the central banks buying the most gold today and why they might be doing it. Plus they recommended a "beaten-down gold producer" whose shares are trading at a massive bargain, especially since gold's price has taken off over the past month or so.

Existing subscribers and Stansberry Alliance members can check out the latest issue of Commodity Supercycles for more.

A potential catalyst for higher gold prices too...

Yesterday, editor Garrett Goggin published the latest issue of Gold Stock Analyst, and he outlined the scenario for even higher gold prices ahead...

Namely, he talked about the possibility of more failures of small and medium-sized commercial banks, tied to dwindling values in commercial real estate. As Garrett said...

Naturally, the Fed will be forced to step in again... like it did in 2008, when it bailed out the big banks... and in 2023, when it injected record liquidity in the wake of the Silicon Valley Bank and Signature Bank failures.

In other words, as the commercial real estate sector tanks, the Fed will support the smaller regional players with trillions of dollars, essentially absorbing their losses.

Why does this matter for gold investors?

Well, when the Fed's balance sheet expanded in 2008 (due to the big-bank bailout), the price of gold doubled from $870 per ounce to $1,770 per ounce over the next three years. The central bank's balance sheet ballooned by roughly $300 billion back in March 2023 due to the regional bank bailout. And as the money supply increases, we expect the value of the U.S. dollar to decline and gold to soar.

With similar economic conditions in play today, including the Fed's apparent shift to a "looser" monetary policy, Garrett says gold is likely to continue its strong uptrend.

Existing Gold Stock Analyst subscribers and Stansberry Alliance members can find more details – including Garrett's price prediction for gold for the next few years and his recommendations for how to profit in gold stocks – right here.

New 52-week highs (as of 4/8/24): Amazon (AMZN), Arhaus (ARHS), Alpha Architect 1-3 Month Box Fund (BOXX), Dimensional International Small Cap Value Fund (DISV), iShares MSCI Emerging Markets ex China Fund (EMXC), Diamondback Energy (FANG), Freeport-McMoRan (FCX), GEO Group (GEO), SPDR Gold Shares (GLD), KraneShares MSCI Emerging Markets ex China Index Fund (KEMX), Sprott Physical Gold Trust (PHYS), Sprott Physical Silver Trust (PSLV), Sprott (SII), iShares Silver Trust (SLV), Textron (TXT), ProShares Ultra Gold (UGL), and Viper Energy (VNOM).

In today's mailbag, more feedback on the bridge collapse here in Baltimore... Do you have a comment or question? As always, email us at feedback@stansberryresearch.com.

"Since when does the public pay for such an accident? Can we get this treatment for anyone having an automobile accident? I suspect not!!" – Subscriber Ron T.

All the best,

Corey McLaughlin
Baltimore, Maryland
April 9, 2024