My 2020 Crypto Forecast

Palm Beach Daily

My 2020 Crypto Forecast

By Teeka Tiwari, editor, Palm Beach Daily

On November 29, 2019, the whole world changed and no one noticed…

A cadaverous group of crumpled-suited career bureaucrats came together and did something unexpected. The event was so underreported… it’s doubtful even one in 1 million people are aware of it.

Of those who do know about it, maybe 5% of them understand just how important it is. In the U.S., that comes down to just about 15 people in the entire country who get what this historic agreement will mean.

These fortunate few will use that information to make tens of billions of dollars starting today.

And today, I want to share with you what that information is… and why it will ignite a huge crypto rally in 2020.

Two Major Drivers in 2020

If you’ve been following the past two months, then you know there are two drivers aligning perfectly that will propel crypto prices to new highs:

  • The first driver is a dramatic drop in incoming supply caused by the bitcoin halving event

(As you may recall, the halving is when the bitcoin reward is cut in half. The first was in 2012 and the second was in 2016. The third will occur in May 2020.)

These financial products will act as a gateway for investor money to enter crypto assets. It’s the same way exchange-traded funds (ETFs) acted as a gateway for investor money to enter stock indexes, precious metals, and energy products. 

Since the first U.S. ETF launched in 1993, we’ve seen $6 trillion flow into ETFs.

These financial products have been a home run for fee-hungry Wall Street. We estimate financial firms have made $26 billion in fees from them. And we expect they’ll use the same playbook to get their clients into crypto, too. 

The potential fee income is just too large for them to ignore. We peg it as an $8.3 billion annual fee opportunity for Wall Street. 

And just as Wall Street financial products drove prices for stocks, oil, and gold to new all-time highs… we expect they’ll do the same with crypto.

Remember, the total market cap is just around $200 billion. So it won’t take much adoption by regular investors to push crypto valuations into well over $1 trillion. 

And according to a Bank of America report released last month, ETF assets will grow to an estimated $50 trillion over the next 10 years. 

If that’s accurate, then the Wall Street fee opportunity for crypto products could be as much as $21 billion per year.

And the fuse for this catalyst has just been lit…

The World’s Fourth-Largest Economy Just Said “Yes” to Crypto

For this widespread adoption, governments and regulators must allow financial institutions to buy, hold, sell, and create securitized crypto products. 

And I have exciting news for you: On November 29, Europe’s largest economic power rewrote its laws to allow banks to do just that starting today.

The new law implementing the fourth European Union (EU) Anti-Money Laundering Directive passed by Germany’s parliament clears the way for German banks to build crypto products, offer crypto trading, and hold crypto on behalf of their clients.

Friends, when I started writing about crypto in 2016, I prophesied the day would come when we’d see a legal framework to integrate crypto assets into the traditional financial system.

To say those prophecies were met with scorn would be an understatement. Ridicule, mockery, and blunt rudeness were the nicer things I faced when I spoke about the broad acceptance of crypto assets.

Yet here we are at the beginning of 2020. And even the most conservative German bank – Deutsche Bank – recently released a report heralding the death of cash… and the rise of cryptographic money like bitcoin. 

In a report last month, a Deutsche Bank analyst called the current fiat (paper money) system fragile. Jim Reid, head of global fundamental credit strategy and thematic research at Deutsche Bank, expects cryptographic money to overtake fiat by 2030.

The report went on to say exactly what I have been saying since 2016 (emphasis added):

Separately, while critics bemoan cryptocurrencies as constrained by regulatory hurdles, we believe the incentives of governments and card providers are such that digital currencies are inevitable.

It’s estimated German banks, brokers, and hedge funds control as much as $3.1 trillion in assets. 

Let’s assume crypto becomes viewed as an alternative asset like gold. That suggests we could see as much as $150 billion flow into crypto just from Germany.

If the rest of Europe follows Germany with just 1% of its financial assets, we could see another $230 billion allocated to crypto assets.

As Europe’s financial leader, it’s not too much of a stretch to imagine that where Germany goes, the rest of Europe will follow. 

In fact, it’s already starting to happen…

All the Pieces Are Falling Into Place

Just two weeks after Germany’s landmark law passed, the $1 trillion Dutch banking giant ING announced it’ll allow its customers to store their crypto assets with the bank.

And while we’re seeing big waves in Europe, the pieces are starting to fall into place in America as well… 

In November, Fidelity Investments – the fourth-largest U.S. money manager and broker – received approval from New York to begin offering crypto trading and custody to its clients in that state. 

In a statement, the state’s Department of Financial Services said Fidelity can now launch a digital currency trading platform “on which institutional investors and individuals can securely store, purchase, sell, and transfer bitcoin” to New York residents.

Fidelity has 30 million retail clients and over 20,000 business clients. But this is just the tip of the iceberg. 

There are 500 million stock investors. And Wall Street will be licking its chops to charge fees on a slew of new products it can sell to this pool of new investors. 

Even the notoriously strict Securities and Exchange Commission (SEC) is starting to soften its stance.

On December 2, the SEC shocked everyone when it approved a bitcoin fund from Stone Ridge Asset Management – which collectively manages $15 billion across its family of funds.  

The first-of-its-kind fund targets institutions that want long-term exposure to bitcoin. It will mimic the price of bitcoin… and invest in bitcoin futures that trade on the Chicago Board Options Exchange (CBOE). 

Although small at just $25 million, the fund marks the beginning of what could be a tidal wave of institutional cash coming into bitcoin.

What is exciting about this announcement – and what you need to focus on – is the approval of this fund will likely pave the way for an approval of a similar fund that settles in actual bitcoin. 

This means actual bitcoin will be pulled from the market and stored, traded, and exchanged between counter parties.

For bitcoin holders, the new demand will benefit us by shrinking an already dwindling supply ahead of the halving. 

It’s not rocket science… When demand shoots way up and supply goes way down, prices gallop higher.

The Future Is Bright

Starting today, we’ll see the world’s fourth-largest economy, Germany, allow its banks to store crypto. Germany is the leader in the EU, so expect the other 27 EU countries to follow suit. That’s a massive trillion-dollar market.

In the U.S., we’re starting to see the regulatory environment for crypto soften. That will allow Wall Street to bring crypto products to 500 million investors. 

And I haven’t even mentioned the fast-growing Asian region, where crypto adoption is already high in places like China.

All of this demand is set to the backdrop of the halving, which will cut incoming supply in half. 

Sure, there’ll be some volatility along the way. And don’t be surprised if crypto starts the year off soft as it usually does. I want you to look past that and stay firmly fixed on what matters in the long term.

And that is, dwindling supply and growing demand will cause a massive price in all crypto coins… not just bitcoin.

Let the Game Come to You!

Teeka Tiwari
Editor, Palm Beach Daily

P.S. Crypto won’t be the only big investment I’ll be following this year…

On January 8, I’ll reveal my No. 1 wealth-building opportunity of 2020. It’s a chance for you to get in on a pre-IPO deal with a billionaire, before it lists on the Nasdaq. Already, this company is drawing so much interest from heavy hitters.

I’m calling this event Freedom 2020… because this one opportunity has the potential to help you reach financial freedom this year.

If you attend this event, you’ll have the chance to secure your stake in this pre-IPO deal for as little as $250. And on the day that it does go public, you will have the chance to fund your entire nest egg that day.

So click here to RSVP for this free event… and tell me your “freedom number” today

IN CASE YOU MISSED IT…

FINALLY REVEALED: The Greatest Money-Making Secret on Wall Street…

A system tested and proven so accurate and profitable, renowned crypto expert Teeka Tiwari pulled some of his money out of crypto to commit to this system instead. 

It's been four months behind the scenes. So far, there's been an 80% win rate and over $45,100 in gains. Now, Teeka is inviting you to “partner” with him in using this system… and putting millionaire status within your reach.

You can get all the details here.


Like what you’re reading? Send us your thoughts by clicking here.

© Palm Beach Research Group
455 NE 5th Ave, Suite D376, Delray Beach, FL 33483
www.palmbeachgroup.com

This editorial email containing advertisements was sent to phanhoa1821960.trader@blogger.com because you subscribed to this service. To stop receiving these emails, click here.

Palm Beach Research Group welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice.

To contact Customer Service, call toll free Domestic/International: 1-888-501-2598, Mon–Fri, 9am–7pm ET, or email us here.

© 2020 Palm Beach Research Group. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Palm Beach Research Group.

Privacy Policy | Terms of Use

No comments:

Post a Comment