To investors,

I have assembled a collection of charts and graphics to better understand where we are in the bitcoin cycle, along with how the digital currency is impacting financial markets.

First, bitcoin has hit a new all-time high. While that is cause for celebration, we are nowhere near the top of this bull market yet. According to Stockmoney Lizards, “Satoshimeter is loading, but is only 9. We have still a lot of upside.”

Bitcoin’s price has been increasing because $3 billion per day is flowing into the bitcoin network, which Willy Woo points out in this chart.

In addition to the capital flowing into the asset, Willy highlights that we are watching the third large supply shock in the market. If you have demand increasing and available supply decreasing, price has to go up to accommodate everyone.

Another clear way to see this is by overlaying the bitcoin price with bitcoin on exchanges.

Famed trader Peter Brandt points out, “it is now official. The Bitcoin/Gold ratio has now posted a new ATH. Next stop will be 89 to 1 -- it will require 89 ounces of Gold to buy a single Bitcoin.”

Bitcoin is eating gold. An easy place to see this is by comparing the bitcoin and gold ETFs. There is a clear winner in terms of popularity and pace of growth.

Lastly, odds are bitcoin will continue appreciating for the next few months. You can see bitcoin’s price in response to the flow of capital in the past, which suggests we are entering a similar period right now. “Bitcoin's money flow has entered yellow. 3-4 months of verticality have followed.”

It is fun to watch bitcoin do what holders have long thought was going to happen. It appears there is plenty of time left in this bull market, so be careful that you don’t get too excited. One of the best strategies with bitcoin is to get very good at doing nothing for long periods of time. Let’s see what happens.

Hope you all have a great day. I’ll talk to everyone tomorrow.

-Anthony Pompliano

Founder & CEO, Professional Capital Management

Anthony Pompliano Explains The 5 Things Driving Bitcoin’s Price Higher

Anthony Pompliano records a solo episode explaining why bitcoin has exploded in 2024, and where it could be headed. Topics include historical bull markets, media coverage, Wall Street, Donald Trump, US bitcoin strategic reserve, MicroStrategy, federal reserve, and more.

Enjoy!

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