April 16th 2021, Cryptoassets Update

Market Summary

Bitcoin hit a new all-time high of US$64,863.10 on March 13th, but the Bloomberg Galaxy Crypto Index (BGCI) had almost the same value as the prior month at 2195.6. Fast forward one more month. BTC again hit a new high of US$64,836.10 on April 14th and the BGCI is now at 2931.8. April 16th 2021, Cryptoassets Update by Van Tharp.

Let me put this into perspective. In late 2017, I said that cryptoassets were the biggest institution revolution since the Industrial Revolution and that they represented the investment of a lifetime. Institutions were not ready or capable of participating in that revolution so they “pooh-poohed” cryptos. Michael Saylor, the President of MicroStrategy said in 2013 that BTC’s days were numbered but now he’s personally one of the top 100 holders of BTC. On October 28, 2020, he said he owned 17,772 BTC purchased at an average price of US$9,882. At one point he said that he was purchasing $1,000 worth of BTC every second. His company, knowing about his personal purchases, purchased most of its coins after he’d already acquired a large personal stake. MicroStrategy now owns about $3 billion in BTC.

In 2018, the SEC decided that most altcoins were securities and that precipitated a huge bear market. Cryptos underwent an 85% decline into the last month of 2018 and BTC hit a low price of $3,236.76 on December 15, 2018. But then look what happened:

  • BTC was up 92.71% in 2019
  • BTC was up 305.94% in 2020
  • And now it’s up 116.22% in the first 3.5 months of 2020.

Last July we decided to use tuition money from new Super Traders for a GBTC position. We took all the risk but would credit the STs with 79% of any gains. Those who paid their $10,000 tuition were able to cover all of their ST Foundation tuition without paying any additional money because of the credit our position gained in just six months. Those who paid $25,000 were able to use the gains to pay for the rest of the ST Foundation tuition and, in most cases, also pay the ST Awakening tuition. The crypto price gains were impressive – there was actually a period from October through November last year when our crypto positions gained over $3 million in seven weeks.

What did I say in 2018? Cryptos are the investment of a lifetime!!!

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