Bitcoin Maxi Expects BTC Price At $500K With A 1987-Style US Stock Market Crash

10 months ago 5

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The Bitcoin (BTC) price roared past $50,000 earlier this month amid the successful launch of spot Bitcoin ETFs in January. However, the macro indicators flash a warning signal despite the S&P 500 reaching new all-time highs above 5,000 levels earlier this month.

A 1987-Style US Stock Market Crash Coming

While the S&P 500 and other US indices have been roaring to new highs, it largely comes with a push from the top 10% stocks. Since reaching its most recent low point in October 2022, the magnificent seven stocks including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla have surged by almost 117%, greatly surpassing the performance of the remaining 493 companies in the S&P 500 index.

As per the Kobeissi Letter, the top 10% of stocks in the US contributed to 75% of the entire market value. This marks the highest level of stock market concentration since the Great Depression in 1931.

During the Dot-com bubble of 2001, the concentration of the top 10% of stocks reached approximately 72%. Even before the 2008 Financial Crisis, the concentration of the top 10% of stocks peaked at around 66%. On average, the top 10% of stocks represent about 64% of the entire stock market.

As a result, renowned Bitcoin advocate Max Keiser warns of an impending financial downturn reminiscent of the 1987 crash. Keiser asserts that Bitcoin heralded as the ultimate safe haven asset, will skyrocket beyond $500,000 as investors seek refuge from traditional market volatility. Furthermore, Keiser predicts a continued erosion of gold’s status as a monetary asset in favor of Bitcoin.

In addition to Bitcoin’s projected ascent, Keiser anticipates regulatory crackdowns targeting Bitcoin exchange-traded funds (ETFs) and domestic Bitcoin miners, potentially leading to government seizures. “If they can do this to Trump they can certainly seize Bitcoin held in BTC ETF’s & commandeer US BTC miners,” he added.

1987-style crash coming. #Bitcoin, the ultimate safe haven, will soar past $500,000

Gold will continue getting demonetized by #Bitcoin

BTC ETF’s (& domestic BTC miners) will get seized by U.S. gov.

1 million middle & upper class migrants will flood into #ElSalvador https://t.co/zx3NbrkV5m

— Max Keiser (@maxkeiser) February 21, 2024

The 1987 crash was influenced by various factors: Economic growth saw a slowdown in the initial three quarters of 1987, coupled with a surge in inflation. This economic backdrop, reminiscent of the stagflation period of the 1970s, left investors on edge. Moreover, the stock market had already experienced a nearly 10% decline the week preceding Black Monday, intensifying investors’ anxieties.

BlackRock Hosting Digital Assets Summit

While Max Keiser has taken an anti-Bitcoin ETF stand, the world’s largest asset manager BlackRock continues to pull fresh inflows into its iShares Bitcoin ETF.

Later today, BlackRock will host the Institutional Digital Assets Summit, an event drawing attention from the financial world. This summit comes at a time when BlackRock’s Bitcoin ETF stands out as the top-performing ETF of 2024, marking its sole digital asset offering on the market.

Essentially, the summit is poised to serve as a strategic platform for promoting Bitcoin to institutional investors, making it akin to a specialized Bitcoin sales conference tailored to meet the needs of large financial institutions.

JUST IN: BlackRock is hosting the Institutional Digital Assets Summit tomorrow.