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13 Dec, 6 tweets, 4 min read
MicroStrategy is about to buy $650 million worth of #Bitcoin and raise their total investment to $1.125 billion.

When it comes to public companies $MSTR is winning the #BTC treasury game by a good margin.

Time for a thread 👇👇👇
1/ MicroStrategy started their #Bitcoin treasury program back in August.

The least we can say is that this was good for $MSTR shareholders.

See for yourself 👇
2/ Looking at MicroStrategy's stock correlations it is clear that something happened.

Before:
MSTR vs BTC correlation +22%
MSTR vs NASDAQ correlation +51%

After:
MSTR vs BTC correlation +53%
MSTR vs NASDAQ correlation +20%
3/ This jump in the correlation between $MSTR and #Bitcoin makes a lot of sense when you consider that the current value of their #BTC treasury hodlings is more than 25% of their market cap.
4/ MicroStrategy's performance is going to be tied to #Bitcoin in the foreseeable future.

At the close on Friday $MSTR return on BTC holdings was about 60%.

But this is just the start of this halving cycle. We haven’t seen anything yet.
5/ @michael_saylor is showing the way:

- Use #Bitcoin as a treasury asset to preserve your purchasing power.
- Do it early to benefit from the upside of the Bitcoin adoption curve.

More of my thoughts on that here 👇
ecoinometrics.substack.com/p/ecoinometric…

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More from @ecoinometrics

ecoinometrics Profile picture
29 Nov
Depending on who you ask, #Bitcoin could be worth anywhere between $50k and $300k by the end of this halving cycle.

Ok, but how big is that compared to other assets?

Time for a thread 👇👇👇
1/ At the current price, the market size of #Bitcoin is that of a large cap stock.

That’s big but for digital gold it isn’t that big.
2/ Talking about digital gold, #Bitcoin is only about 3.6% of the size of the gold market…

So there is plenty of room to grow in order to catch up.
Read 5 tweets
ecoinometrics Profile picture
27 Nov
Year to date #Bitcoin has easily outpaced gold in terms of growth.

This trend is accelerating, so naturally it is time for a quick thread 👇👇👇 Image
1/ When you zoom out the long term trend is hard to miss.

But gold is not yet at its lowest point against #Bitcoin. Image
2/ The real #Bitcoin breakout is still recent so the correlation with gold remains high.

But as the trend develops we should see it decrease over time. Image
Read 5 tweets
ecoinometrics Profile picture
17 Oct
The #Fed Playbook
Oct. 17, 2020

The Federal Reserve is back in business.

So I guess it's time for a thread. 👇👇👇

1/ This week the balance sheet stands at $7.15 trillion which is close to its all time high.

But new records are incoming.
2/ Since the start of the #Fed intervention this year they have added $2.9 trillions to the system.

Looks like a lot but in percentage terms it is a much smaller expansion than in 2008.
3/ After 2008, all that money added to the system has inflated the valuation of various financial assets but most of all the stock market.
Read 6 tweets
ecoinometrics Profile picture
21 Aug
The #Fed Playbook
Aug. 20, 2020

What's up with the Federal Reserve this week? Time fo a thread. 👇

1/ The balance sheet is back above $7 trillion. We are probably not going to go very much below that this year. ImageImageImage
2/ Since the start of the #Fed intervention this year that's $2.8 trillions added.

Sure that's a lot of money... but in percentage that's only a 65% expansion.

There is a lot more room for growth if we compare to what happened after the 2008 crisis. 🧐 ImageImage
3/ But the #FOMC doesn't really have a choice... #stonks need to go up... Image
Read 5 tweets
ecoinometrics Profile picture
20 Aug
Is it realistic for #Bitcoin to reach $100,000 per coin during this halving cycle?

Time for a thread. 👇👇👇
1/ PlanB (@100trillionUSD ) stock to flow model is targeting #Bitcoin to stabilize around $100,000 by the end of this halving cycle.

So far so good.

2/ The 3rd halving happened 100 days ago. Since then #BTC has gained 25%.

But to get to $100,000 we’ll need to see a total growth of 10x.

That’s still a long way to go.
Read 12 tweets
ecoinometrics Profile picture
7 Aug
The #Fed Playbook
Aug. 06, 2020

What's going on with Brrrr? Time for a thread. 👇

1/ Not much has changed for the Fed. Minus $4 billion on the balance sheet this week.

When your assets total $7 trillion that's barely visible. ImageImageImage
2/ In net value the size of the 2020 #FOMC intervention dwarfs what happened in 2008.

But in percentage term that is barely the beginning. 👇 ImageImage
3/ So far the US Federal Reserve is getting what they wanted. They have prevented a total meltdown of the stock market.

But investors aren't blind to the side effects of money printing: #gold and #Bitcoin are on the rise. Image
Read 5 tweets

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