Brace yourself, but bitcoin may about to go mainstream
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BRACE YOURSELF, BUT BITCOIN MAY ABOUT TO GO MAINSTREAM
Bitcoin BTC= has been on a tear since Donald Trump won the presidential election, advancing more than 30% since November 5.
Philip Palumbo, founder, CEO, and chief investment officer of Palumbo Wealth Management, is out with a note highlighting the "attitudinal shift" that may be brewing toward bitcoin as a result of Trump's election.
This because Palumbo says, that based on remarks Trump was quoted as saying at the Bitcoin 2024 Conference, back in July, that he appears to have come around to the view that it may be wise for the U.S. to hold a national bitcoin reserve, which to Palumbo, could be a game changer for the cryptocurrency.
Now, Palumbo warns that "accepting President-elect Trump’s comments at face value has rarely proved to be reliable," but "his 180 degree shift in position makes this case more believable."
"In light of the limited new supply of Bitcoin available through mining, and under the assumption that the Federal government would not start mining Bitcoin, the only other possibility is that the U.S. could be a buyer of Bitcoin on the open market," writes Palumbo.
He adds, "Obviously, if the Government intends to do that, it will be (or should be) a well-kept secret. However, the Bitcoin market appears to be discounting that possibility already."
It's just speculation at this point, but in Palumbo's opinion, if the U.S. were to start buying, bitcoin's upside could be much greater, which he thinks is at least some of the reason for the rapid price gains since the election.
Palumbo believes that from a long-term perspective, that the acceptance of bitcoin as a reserve currency would 100% legitimize it as a financial asset, "which is something that diehard Bitcoin aficionados have been seeking for years. Bitcoin may be about to go mainstream."
That said, Palumbo cautions that given how far bitcoin is currently trading above its 200-Day moving average, coupled with severely overbought momentum, that if you step into bitcoin here, "you are doing so at your own risk."
To him, "on a pullback, Bitcoin gets more interesting."
(Terence Gabriel)
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