Prof G Markets: Bitcoin’s Rally, Elon’s xAI Fundraising, and Alaska Airlines Acquires Hawaiian

Bitcoin Surge

Bitcoin's recent surge past $44,000 is largely driven by the anticipation of a Bitcoin ETF potentially receiving SEC approval in early 2024. This ETF would be the first in the U.S. to invest directly in Bitcoin, unlike existing ones that track futures contracts. Scott Galloway notes that this development could significantly broaden market access, as it allows people to easily buy Bitcoin through platforms like Schwab and Robinhood, thus increasing demand 1.

The belief here, I believe, is this will create a broader on ramp. People know how to buy stocks on schwab.com and on robinhood. So the ability to very easily, from their phone, buy these assets probably is going to expand the market, increase demand, and it makes sense that the price should go up.

--- Scott Galloway

This potential approval is seen as a "good housekeeping seal of approval," boosting Bitcoin's credibility and contributing to its 160% increase in value year-to-date 2.

   

Crypto Risks

Investing in cryptocurrencies remains fraught with risks, as Scott Galloway shares his experiences with volatile markets. He mentions losing significant amounts on Coinbase calls but also highlights a strategic investment in FTX claims, projecting a 77% recovery rate 2. Despite the speculative nature of crypto, Ed Yardeni points out that large asset managers like Blackrock lend credibility to the market, though he remains skeptical about the fundamental value shift in Bitcoin 3.

I think you have to acknowledge, though, that bitcoin and ethereum look as if they've established themselves as viable stores of value. It does feel as if they're going to be enduring.

--- Scott Galloway

Scott acknowledges Bitcoin and Ethereum as viable stores of value, suggesting their endurance in the financial landscape despite inherent risks 3.