The final results of this year's election are expected to be announced around midnight on November 5, local time in the US, which is the afternoon of November 6 in Beijing time.
To summarize this article:
The trend is unstoppable: Bitcoin has a broad future outlook, and most institutional investors are focused on long-term trends.
Regardless of who the US president is, whether it is Trump or Harris, US Treasuries will continue to expand, and the Federal Reserve's easing policy is almost inevitable. It is this macroeconomic trend that supports Bitcoin (BTC) as a long-term appreciation expectation as an anti-inflation asset. As digital gold, Bitcoin's value will gradually emerge with changes in global financial policies.
Recently, Bitcoin against BlackRock's US Treasury ETF reached an all-time high. Last week, BTC was close to the historical high of $73,000 set in March, while the trading price of BTC was 800 times the value of the BlackRock iShares 20+ Year Treasury Bond ETF (TLT). This ratio significantly exceeds the 466 times when BTC reached its historical peak in November 2021, further proving the future utility of Bitcoin.
The future value and utility of Bitcoin
This data demonstrates the unique value of Bitcoin as an asset class. With the continuous easing of global monetary policies and the sustained increase in market demand, Bitcoin as a decentralized, digital form of currency is gradually becoming the focus of global investors.
Divergence strategies of top capital
Top investors show a clear trend of divergence in asset allocation choices:
Buffett chooses US Treasuries: Buffett's Berkshire Hathaway currently holds $277 billion in cash and cash equivalents, most of which are short-term US Treasuries, aiming for stable, low-risk returns.
MicroStrategy's Saylor bets on BTC: MicroStrategy CEO Michael Saylor has chosen to raise funds by issuing stocks, continuously increasing Bitcoin holdings. He is betting on a significant appreciation in Bitcoin's future, which is also one of his company's main strategies.
Tether bets on both sides: As the largest stablecoin issuer, Tether chooses to hold both short-term US Treasuries and Bitcoin to hedge against potential market risks, balancing investment opportunities in traditional financial markets and the crypto market.
Is the price of Bitcoin at a million dollars high?
If the price of Bitcoin rises to one million dollars, Buffett, with his current cash reserves, would still be able to acquire all the Bitcoins held by MicroStrategy and Tether. This means that even if the current price of BTC is around $70,000, there is still significant room for growth before reaching future peak prices.
Bitcoin has not yet truly come under the control of these giants. When Buffett starts buying, it indicates that the real potential of this market is just beginning to spread.
The importance and future of the crypto space
Aside from Bitcoin, the entire crypto space also holds great potential for the future. Blockchain technology, as the foundation of cryptocurrencies, plays a role not only in digital currency transactions but also expands into various fields such as financial services, supply chain management, and digital identity. The application scenarios of cryptocurrencies are continuously expanding, and as regulatory policies in various countries regarding the crypto market gradually become clearer, the demand for crypto assets will gradually rise. Especially with the continuous development of smart contract platforms like Ethereum, and the rise of new blockchain platforms like Solana and Avalanche, the technology and financial ecosystem of the entire crypto market is maturing rapidly.
As the leader of the market, Bitcoin's future appreciation potential is still promising. However, the innovations and application potential of other crypto assets should not be overlooked. As more investors and institutions enter the crypto market, the market size of cryptocurrencies will gradually expand, bringing unprecedented wealth growth opportunities for investors.
Investors should maintain composure and not be influenced by short-term fluctuations.
Whether it is crypto assets or traditional assets, short-term market fluctuations are inevitable. As mature investors, we should focus on long-term trends and avoid being swayed by news hype or market sentiment.
