Well it happened. This is it, the moment we’ve all been waiting for; Bitcoin’s moment. Donald Trump won the election, pro-crypto Republicans are taking over the US Senate and House, and old school Wall Street skeptics are starting a 180. It has never been a better time for Bitcoin since its inception.
Let’s get over the fact that the road to this incredible time was filled with so many potholes in the shape of consolidation and regulatory uncertainties.
None of that matters when you have Jim Cramer and Kevin O’Leary (two former proud haters of Bitcoin) changing their tune, BlackRock’s Bitcoin ETF making over a billion dollars within the first 20 minutes of Market Open and America having its first-ever self-proclaimed “crypto president.”
Wall Street’s will-they-won’t-they relationship with Bitcoin
It is completely understandable that Wall Street would hate Bitcoin. It goes against everything they are used to. It’s too wild. Those guys prefer to invest in things they can control a little bit. They prefer a market that opens and closes on schedule.
They are not keen on getting into a market that is always open. What if they wake up one morning and BTC was worth $17,000 because a crypto company headquartered in Europe filed for bankruptcy overnight?
And besides, there’s too much ‘Dumb Money’ in Bitcoin. Retailers have single handedly kept it above critical levels since March. One thing Wall Street hates more than geopolitical disasters is retail investors. They’re not about to jump headfirst into a market heavily controlled by retailers, no.
And that’s where an ETF comes in. Sure it reduces the market risks significantly. But if BTC crashes, BlackRock’s stock (BLK) would too, and so will that popular ETFs. CEO Larry Fink doesn’t seem too bothered though.
Now what Bitcoin needs in order for Wall Street to feel entirely comfortable around it is legitimacy. Much more than the one it has right now.
O’Leary said on Shark Tank that he is “long on Bitcoin.” Cramer said he might never go bearish again. If Trump goes through with everything he has promised us, Bitcoin will get the legitimacy needed to party on Wall Street.
And that might not necessarily be a good thing, but it is the next best alternative since Bitcoin insists on remaining correlated to US equities. It’s clear the apex crypto loves Wall Street. Too bad the feeling is not mutual.
What happens to Bitcoin after Wall Street takes over?
Now when those NYSE boys come into our market, they’ll be doing it with a plan. One that gives them some semblance of control at the expense of retail freedom, as per usual.
And Bitcoin wouldn’t fight back. It’s too volatile and dependable. It started needing Wall Street to survive the day Larry Fink’s board approved his decision to launch a spot Bitcoin ETF.
It’s going to be the most toxic relationship we’ve ever seen. And if president Trump goes ahead with his Federal Reserve takeover, things will get even worse.
But there is a sad side to this circus:- Trump and his tariffs. We all know that would wreck the economy, cause more geopolitical uncertainties, and crash the stock market— again. Bitcoin has stayed with this market long enough to not survive if it crashes.
However, if Trump can slow down with his “drill baby, drill!” agenda, and put his businesses first like he used to while trying to find the best way to fix all the bridges Biden burned without crashing the largest economy on earth, we just might make it.
Either way, BTC will never be independent again.
