{"id":22656,"date":"2020-11-22T22:47:14","date_gmt":"2020-11-23T03:47:14","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=22656"},"modified":"2020-12-04T12:10:28","modified_gmt":"2020-12-04T17:10:28","slug":"markets-metals-navigator-bitcoin-copper","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/markets-metals-navigator-bitcoin-copper\/","title":{"rendered":"Markets & Metals Navigator: Bitcoin and Copper Sizzle"},"content":{"rendered":"

Bitcoin’s Epic Rise<\/h2>\n

It was a muddling along week for nearly all assets classes except for Bitcoin, the digital currency rose 16% for the week breaking through $18K.<\/p>\n

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The key difference between the current rally in Bitcoin versus the 2017 run is the absence of broad popular interest.\u00a0 Looking at the Google search trends history Bitcoin is currently showing a quarter of the search interest relative to 2017.<\/p>\n

Bitcoin – Google Trends Search History Interest Over Time<\/h4>\n

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Cole Walton<\/a> of Kanos Management highlighted this powerful graph looking at the “halvings” of Bitcoin and the subsequent rallies in the Bitcoin price.<\/p>\n

Roughly every 4 years the reward granted to Bitcoin miners for adding a block to the blockchain is cut in half. The Bitcoin halving was designed by Satoshi Nakamoto to keep Bitcoin\u2019s inflation in check.<\/p>\n

In May 2020, the number of bitcoins entering circulation every 10 minutes dropped by half, to 6.25 from 12.5.<\/p>\n

From the graph below we can see how powerful the halving catalysts have been historically.\u00a0 From the halving in November 2012, Bitcoin rallied +9,212%; and from the halving in July 2016 Bitcoin rallied +2,910%.<\/p>\n

We believe the teas leaves are aligned for the continuation of this strong rally in the Bitcoin price, COVID-19 has presented one of the most attractive backdrops for digital gold (and real gold for that matter!).<\/p>\n

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The Catch-Up Trade: Precious Metals Disconnected from Bitcoin<\/h2>\n

Since August gold has drifted lower from its high of $2,063\/oz to the current price of $1,871\/oz – down 10%.\u00a0 During that same period Bitcoin has risen +55%.<\/p>\n

We believe this current period of disconnect between gold and Bitcoin presents an opportunity for precious metals investors. Specifically we believe gold & silver miners will be the catch-up trade to Bitcoin.<\/p>\n

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Copper in the Sweet Spot<\/h2>\n

Since the March low copper has been a stellar performer in the commodity universe, rallying over 55%.<\/p>\n

2020 Year-to-Date: Copper<\/h4>\n

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Capital 10X has been bullish copper this year for 3 key reasons:<\/p>\n

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  1. Chinese stockpiling<\/li>\n
  2. Leveraged play on the global stimulus driven recovery<\/li>\n
  3. Structural demand tailwinds for electric vehicles.<\/li>\n<\/ol>\n
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    Capital 10X has been BULLISH #copper<\/a> in 2020 for 3 key reasons:<\/p>\n

    1. Chinese stockpiling \ud83c\udde8\ud83c\uddf3
    2. Leveraged play on a stimulus driven recovery \ud83d\udda8
    3. Structural demand tailwinds: EVs \ud83d\udd0c \ud83d\ude97 <\/p>\n

    Full note (Oct 28th): https:\/\/t.co\/VbUor0BEbq<\/a>pic.twitter.com\/Es6W1mNSSu<\/a><\/p>\n

    — Capital 10X (@capital10x) November 20, 2020<\/a><\/p><\/blockquote>\n