Bitcoin Breaks $12,000 Today
Our Take on the Mining/Bitcoin/Blockchain Market
We believe we are in inning 1 or 2 of a strong bull market as Bitcoin continues to rally. Our analysis indicates that Bitcoin should retest the $13,800 previous rally high shortly and will likely race higher into the $15,000 - $17,000+ range. Back in July, our CEO, Matt D'Souza (Co-Founder and Portfolio Manager of Blockchain Opportunity Fund, LLC - a large Digital Currency Hedge Fund out of Chicago), posted the following research and analysis of his data driven thesis here: https://twitter.com/mjdsouza2/status/1149246257581441025.
The key observation is that the behavior of Bitcoin is like an asset in a bull market on steroids. During the previous Bull Cycle (2016-Dec 2017) the 2017 Bull Market (1,900% gains) was far greater than the 2016 Bull Market (300% gains). The data illustrates how the environment we are presently experiencing is more akin to the 2017 Bull Market. Most significantly, the corrections last 40-55 days max. This is because institutions are taking advantage of any opportunity to buy the dip – demand radically outweighs supply. In 2016, corrections lasted 100+ days. The present environment is exhibiting similar price action to 2017.
Lastly, we are seeing a massive drive in Bitcoin demand from China. The largest OTC Desk and Market Makers for Bitcoin in the World clear Matt’s trades. Their trade desks are getting heavy buy side demand from China. This is due to all the turmoil with Hong Kong and the weakening Chinese Currency. China’s economy is in trouble and the people of China know it. They are using Bitcoin to get their money out of China as the Chinese Government has put capital controls on their citizens to prevent them from trying to send their money out of the country but China cannot control Bitcoin and the citizens are using it as an exit proxy – driving up demand and the price of Bitcoin! As the Chinese currency weakens the Chinese Citizens prefer to have their money in Digital Gold – which is Bitcoin.
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It is a great time to purchase Mining Hardware as profitability is increasing, but most importantly, we are early in the Bitcoin Bull Market Cycle. One should be investing while it is the first 1/3 of the cycle rather than the back half - providing ample time to earn back your investment on hardware and deliver excess profits.
We currently have some great deals available in hosting and hardware. The next generation of highly profitable mining rigs are now available for order - reach out to us with any Hardware or Hosting inquiries. As always, we take care of our closest and returning customers and could provide some price flexibility.
We release some of the industry’s best Research Reports, join our mail list (button to join at bottom of email) to receive these for free. If you are a Reporter or Journalist, reach out and we would love to collaborate. We were interviewed by the Associated Press last week, and are looking forward to their release of our take on the mining space.
Please feel free to reach out to us with any questions about Mining, Mining Strategy, Capital Deployment, Bitcoin, or Blockchain Technology. We have run all the models, ROI’s and done the research on all the top mining rigs and understand which are the best purchases and at what price factoring in the risk from the halving, our client’s electricity rates, and different mining environments/climates