It's April 3rd and Bitcoin is trading at $83,708.63 a unit, down 4.37% in the last 7 days according to data from Coinmarketcap.com.
Half of crypto Twitter is terrified that we may have slid into a bear market, quicker than expected and well, half the investment world is shitting themselves over a potential global financial crisis and wars as President Donald Trump continues putting Tariffs on several countries exporting to the United States.
While everyone appears to be literally losing their mind, I'm looking at the Bitcoin chart and realizing that we're only 0.06% down in the last 30 days, 13.21% in the last 90 days, and up 25%+ in the last year.
Uhmmmm, I would say that the tariffs are wholly priced in and Bitcoin is just doing its thing at this point. I feel like April is an important month that will determine whether or not we'd touch below $70k or blow through $100k again. But regardless of what happens, Bitcoin is incredibly undervalued even at these prices. BTC at $1M is approximately 12x from here and considering the wave of institutional interest, we shouldn't be this bearish.
Bitcoin has long term flaws that are at least 70 years ahead, generational wealth lies waiting for the next 3 decades.
Gamestop to add Bitcoin to its balance sheet
GameStop’s board had greenlit an investment in Bitcoin and US-dollar-pegged stablecoins using the convertible debt offering and cash reserves on March 25.
Video game retailer GameStop Corporation (GME) has finished a convertible debt offering that raised $1.5 billion, with some proceeds earmarked for buying Bitcoin.
The offering was initially set to raise at least $1.3 billion, but purchasers opted for an additional $200 million aggregate principal amount of notes, GameStop said in an April 1 filing with the Securities and Exchange Commission.
"The company expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with the Company's Investment Policy," GameStop added. — Cointelegraph report
Gamestop, ahhh, the retailer whose meme stock made the news in 2021 is now diversifying into Bitcoin with access to $1.5 billion in freshly raised capital.
What's particularly interesting about the news of Gamestop purchasing Bitcoin is that its recent raise is not all the liquidity it has access to work with. It also reportedly has over $4.77 billion which it has been authorized by the board to invest in Bitcoin and US-dollar-pegged stablecoins.
The recent raise being based on debt pegged to convertible notes that can be converted to equity and set to mature on April 1, 2030 is added liquidity for Gamestop to position itself into Bitcoin for the next 5 years.
As of today, public companies hold 692,070 BTC, approximately 3.296% of the asset’s 21M supply while private companies hold 398,323, accounting for 1.897% of the max supply.
When looking at the general picture including ETFs, mining companies, DeFi and Countries, about 130 entities are involved and hold 3,092,113, approximately 14.724% of the supply as of April 02 data on Bitbo.io.
With public institutional interest in Bitcoin growing rapidly every day, these numbers are bound to grow fast. We can already see how quickly OTC Bitcoin supply is falling, which is a very useful metric to determine how quickly the asset can slide into a supply shock that would send the market price and value flying.
If we look at data from CryptoQuant, as of April 01, there are 130k+ bitcoin on OTC desks from miners but this value was over 450k+ as of November 2021. Over this period, Microstrategy has acquired over 500k+ bitcoin.
Exchange reserves are also falling. In the past year alone, Bitcoin on exchanges have fallen by more than 500k according to data on CryptoQuant.
All of this points to the fact that we are slowly approaching a period where Bitcoin becomes extremely scarce on exchange platforms, leading to uncontrollable price surge over little amounts as more institutions and retail investors move in.
This is inevitable because the global economy is in shit. Debt has become uncontrollable for most and everybody will be looking for something with a potential upside and a great hedge against whatever scale of financial crisis awaits.
$1 Million seems cheap still, but let's not be maxis today.