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Written by Jonathan Cheesman

The crypto market is certainly getting a lot of attention in the mainstream financial media.

While some of it is negative pointing to excessive valuation and meme coins there’s a lot of positive news about adoption and technical developments.

There is an interesting bifurcation in sentiment about Bitcoin: traditional finance continues its path of adoption, yet the more crypto native market has moved on to higher vol (and thus far much more lucrative) assets and call bitcoin boring!

I’d argue the last 24 hours news has been exceptionally bullish for Bitcoin

  • Druckenmiller was careful not to be too specific to an asset but articulated the case that central bankers have now created a problem for crypto to solve (previously he had critiqued that crypto was a solution looking for a problem) clip is here
  • Palantir commented that they consider adding BTC to their balance sheet. They are certainly not alone: https://www.cnbc.com/2021/05/11/palantir-pltr-q1-2021-earnings.html
  • Tom Brady added laser eyes to his Twitter profile
  • Mark Zuckerberg names one of his donkey’s bitcoin! Amusing zeitgeist, but he’s also a rumored whale

I don’t like to think about Bitcoin or other assets as I see them as two entirely separate trades: one is digital gold and the other is a productive fintech layer.

What I would say is bitcoin is a proven and known quantity, has a much clearer regulatory definition and is very unlikely to fail. The rest of the ecosystem is more iterative, so I’d be careful to let your BTC allocation fall too low.

Within the retail and crypto fund community allocations to BTC have fallen dramatically, though much of this is due to price effects than actual switching. My guesstimation, but I’d say for retail 15% BTC is a high allocation and for funds 25% BTC is high allocation.

In the next 6-12 months we will likely see a lot more allocation from large institutional accounts and these allocations will be permanent. We may also see significant purchasing of other crypto assets but I would think BTC gets the lion’s share.

Price is consolidating around the 50d moving average

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None of the above is financial advice



Jonathan Cheesman