Why Bitcoin's Biggest Moment Has Finally Arrived

Something weird happened on Monday. Stocks were down. Bitcoin was up.

This keeps happening more and more these days. That’s huge.

Particularly at a time when uncertainty in Trump’s trade war is reaching new heights, to see gold continue its rise makes sense — but could Bitcoin really be finally turning into digital gold? It’s long been the promise, but the data hasn’t supported it… until, maybe now?

Plus, as Michael Saylor’s Strategy continues to run their playbook to acquire more Bitcoin, new players seem to be copying the same strategy (no pun intended) on Solana. While the numbers in dollars seems far smaller, one top analyst says now is the time to buy SOL to play the same run.

Bitcoin’s Long-Promised Valhalla

I have a lot of hedge fund friends. They make way more money than me. They have been late to the Bitcoin game. That is now changing.

Increasingly, institutional investors are taking notice of something weird happening this week and last — where stocks sell off and Bitcoin shrugs things off.

As we discussed recently with the financial analyst who called Trump’s gambit back in February before all of this started — he correctly identified the goal: a lower dollar and lower interest rates. Both technically are massively bullish for Bitcoin. But one added element to come from the trade war may have been overlooked.

Increasingly, I think people are waking up to what Bitcoin actually is — a hedge against American dominance on the global stage. That is, if the US really is to retreat and shun globalization, what borderless currency stands to step in among trading partners? It’s most likely Bitcoin.

Admittedly, as we discussed with one of the largest custodians last week, the pace on Bitcoin’s adoption on that front has been pretty slow. But as confidence in America continues to be shaken — and particularly as Trump reveals the cards America holds, the other sides in this theoretical game are forced to more quickly explore those other options. Suddenly, it’s not just theory anymore.

Now, given that it has taken a decade to really even get close to this moment potentially being a possibility, I can understand the hesitance for anyone to think this time might be different. Bitcoin has appeared to break its tech correlation before, only to fall back into trading like Nvidia.

But truly, this time really does feel different. I mean, last time you didn’t have hedge fund legend Ray Dalio going on MSNBC and basically saying he’s far more worried this time about a “breaking down of the monetary order.” And I’m certainly not an alarmist saying something crazy like a Civil War is coming. But I do think it’s at least fair to argue that the edge case of something extremely bad has risen beyond this simply being about interest rates, and lowering those fixing all the issues currently being digested by the market.

I think what we’re seeing now is damage that can be rectified but can’t necessarily be undone even if Trump backs down, or Powell and the Fed eventually get around to cutting rates. (Very much in the same way it’s hard to get a relationship back on the tracks after trust is broken.)

Here’s a chart from Fundstrat’s Sean Farrell highlighting Bitcoin closing in on an all-time high vs. the Nasdaq-100 index (QQQ.)

That’s kind of crazy to think about.

Generally, the best investors do well not by taking on risk and making money, but by making smart best when risk/reward has categorically shifted. I think we are again at one of those moments. DYOR.

A Bonus Call — Solana To Pump?

Now, if you wanted to call bullshit on what I just wrote, you could say, “Zack. Bitcoin is only going up because Michael Saylor continues to sell stock and sell debt and plow those proceeds into Bitcoin — and while that’s definitely happening, he’s not fully leading the charge anymore. Other companies continue to join him in that, as he added another ~$500 million this week to his Bitcoin stash of nearly $50 billion.

But as interesting as that is — it’s also been interesting to see Solana-aligned companies start to do the same thing. While they aren’t anywhere near the scale of Strategy in terms of size in dollar figures, if you adjust for Solana’s market cap, even the same scheme with $100 million can be impactful.

Case in point, a NASDAQ-listed supply chain management company called Upexi announced it raised $100 million via a share offering to buy Solana and hold it on the company’s balance sheet. The stock soared more than 500% before giving some of that back on Monday. And while $100 million seems small, that would equate to about $2.3 billion worth of buying power to move Bitcoin’s price when you adjust for Solana’s market cap.

Another company, Janover, which was recently taken over by former Kraken executives has implemented a similar strategy. Like Upexi, it adopted a Solana treasury strategy and acquired a little more than $10 million worth of SOL on April 15. There are reasons to suspect this is only the early beginnings of that trend. Solana is still off about 50% from its highs.

Catch all the biggest Web3 headlines and updates at Coinage.Media. You can support our community-owned outlet by sharing this newsletter with friends, by scooping up a Coinage NFT, or by staking with our community validator! Did you know that we are the first Web3 media DAO/Coop to pay a distribution back to NFT holders in the US? Make history with us! The media revolution will not be centralized!