The REAL REASONS Bitcoin Is Going Up... [FULLY EXPLAINED]

Added: 2026-05-05

[00:00:00]when you see uh you know more currency debasement, when you see rising government debts, when you see that more people want to move assets across borders, that's going to increase the value of something like Bitcoin.

[00:00:09]>> Are you saying now that Bitcoin and crypto are long-term investments?

[00:00:16]>> Do not be fooled. Bitcoin's rally is set to continue. Most people do not realize the real reasons why Bitcoin and the crypto market is pumping. So, let's start here. First of all, no, Bitcoin's price isn't pumping because Elon Musk is adding crypto to X because China and Russia are buying it or that Apple is using it. The real reason why crypto is pumping, and again, make sure you watch today's whole video because we will go over each one of these individually, the real reason crypto is pumping is because Morgan Stanley is adopting it. Iran is using it. Michael Sailor is buying billions. Tariffs are getting refunded.

[00:00:55]Charles Schwab is now educating their clients and the US government is now regulating it. So let's start here. This is big news. Trump administration to begin refunding 166 billion in tariffs after the Supreme Court ruled the policy unlawful.

[00:01:13]>> Everybody having a good time?

[00:01:16]So what this means over the next 60 to 90 days over 330,000 importers across 53 million shipments may be eligible if approved get refunds plus interest. The refunds will go directly to the businesses that originally paid. I do believe this is good for markets and one of the big reasons why we're seeing a green day today. Another huge reason why Bitcoin is pumping is because Michael Sailor just announced another week of buying billions of Bitcoin. In this case, this week, Sailor announced buying $2.54 billion worth more Bitcoin via his company strategy. In fact, Michael Sailor's strategy just flipped Black Rockck in their Bitcoin holdings. Take a look at this. This is so bullish. And to put it all in perspective, just how much Bitcoin Sailor is buying now, 2.5 months worth of Bitcoin supply has been purchased by Sailor in a single week.

[00:02:17]Just one of these dots. At this rate, strategy will reach 1 million bitcoins by or before August. And again, understand that this bare market, things are very different for Sailor and his company's strategy. In previous down markets, they were not able to buy in size. Now they are truly buying in size thanks to their perpetual preferred stock offering STRC where people buy this to get what is now an 11.5% return on their investment. But basically because they're offering this this has allowed them to purchase 77,000 Bitcoin so far in 2026 which is nearly 10x more than all spot Bitcoin ETFs combined.

[00:03:00]Michael Sailor says he will continue to buy as much as he can as often as he can. But even more than that, he predicts that thousands and thousands of Bitcoin treasury companies will pop up.

[00:03:12]>> There will be thousands and thousands of treasury companies, just like there's thousands of insurance companies, thousands of funds, thousands of banks.

[00:03:22]It goes without saying there's going to be a a monster treasury company in every capital market. There'll be a monster in every capital market, but that doesn't mean there isn't room for a hundred other very successful companies in every every major capital market. And again, I I don't think most people realize what's going on. Fidelity, one of the largest financial services companies in the world, agrees with Sailor. Basically, Fidelity gives a presentation here on why every company needs to get in the Bitcoin game.

[00:03:56]>> And then you compare this to Bitcoin.

[00:03:58]Average annual return last 5 years 65%.

[00:04:02]So the question to companies out there is number one, what's your return on invested capital? Have you calculated it? How does that compare to your cost of capital? Are you generating shareholder value? Do you have extra cash? And if so, what are you doing with that extra cash? And then the ultimate question is what's your current opportunity set? What are the investment ideas and opportunities that are in front of you? And do you think or do you believe the return on those ideas or opportunities will exceed the opportunity cost of Bitcoin? Another big reason why crypto is pumping today and projected to continue to rally over the next couple years is because of what SEC chair Paul Atkins is doing with crypto.

[00:04:51]All of Washington is doing with crypto.

[00:04:54]In this video clip, he takes stock of his first year as SEC chair, but more importantly lays out his four initiatives, four pillars where he wants to expand crypto and tech in America through the future. So just listen to his bullish outlook here.

[00:05:10]>> Well, a year goes by quickly. Yeah, so um but we've made huge progress. I think I promised a a new day at the SEC um when I came aboard and we have we've pivoted from the old practice of regulation through enforcement and the opakeness of the agency as it for example with crypto as you uh mentioned that was job one to uh to focus on that.

[00:05:33]And so basically we're instituting a PR a strategy that I'm calling our act strategy. Advance, clarify, and transform. So advance meaning modernization of our approach. So rather than fending off uh uh new innovative types of uh technologies, we're embracing them. And so to make them so that we'll bring them from offshore where people fled to come back to the United States to to uh really work on their uh uh their products. And then second to clarify things SEC was very opaque as to how it would approach crypto and and other things. We've clarified it with the CFTC. who had an interpretative release to with focusing on defining tokenized securities versus uh other digital assets and our commodities and finally to transform to focus on making our rule book fit for purpose so that we can then make IPOs great again.

[00:06:29]>> Another big reason why Bitcoin and crypto is pumping today because Morgan Stanley has just revealed their Bitcoin public address. 10 trillion. Morgan Stanley has wet their whistle with 64 million Bitcoin, 800 Bitcoin in this wallet. I suspect they will be adding more as time moves forward, especially with Black Rockck ramping things up, continuing to try to lead the way in selling Bitcoin to their clients. They don't want to be second to Michael Sailor. I love the line of questioning in this interview. Bitcoin in particular is this non you know non-s sovereign global decentralized asset that can really provide value to people's portfolios in small doses as a unique asset sort of like how gold doesn't behave like stocks or bonds. Bitcoin is driven by its own rules and its own drivers predominantly which is greater geopolitical or inflation risk. And frankly we live in a world where these are prevalent risks around uh the economy where people want to hedge that with different assets.

[00:07:27]>> Isn't it interesting? It used to be fringe and now thanks very much in part to Larry Frink your boss and Eyesshares coming out with the IBIT. Uh this is more than two years ago now that it really became this opportunity for people to understand it. Are you saying now that Bitcoin and crypto are long-term investments?

[00:07:48]>> I think you have to look at it through a long-term lens because it's volatile because we see over weeks, months it can be up and down. People are still trying to figure out what the you know what the value of this asset is. But if you zoom out and take a long-term view of the role it can play in a portfolio, it can really be one of those diversifiers that behaves unique from stocks and bonds.

[00:08:04]>> When somebody who is Bitcoin curious comes out and says to you, Jay, what is the value? One minute in October it's 126,000. Today it's 76,000.

[00:08:14]>> You have to look at it in the context of a broader portfolio. We can't put a specific price target on it on a given moment. It really has to do with how much do people need this asset that can behave uniquely that can be a geopolitical hedge that's constantly changing around the world. When you see uh you know more currency debasement when you see rising government debts when you see that more people want to move assets across borders that's going to increase the value of something like Bitcoin. And so in this world we see that as a structural trend that's growing but minute by minute that demand and supply is going to change. The fact is, we're going to continue to see stuff like this from institutions, from Wall Street, from nation states. Bitcoin can actually easily reach $1 million in the future if you understand where the demand verticals are going to come from.

[00:09:01]So, Bitwise CIO Matt Hogan lays it out how Bitcoin reaches $1 million.

[00:09:07]>> You mentioned a $1 million Bitcoin. Talk to me a little bit about timeline there.

[00:09:12]What needs to happen for us to get to a $1 million Bitcoin floor?

[00:09:16]>> Yeah. I mean, you know, what we talked about in our long-term capital market assumptions is that all you need to get to a million dollar Bitcoin is for the store of value market to continue to grow the way it's been growing for the last 20 years. That market has grown at a 12% keer for the last 20 years. If that continues for the next 10 years and Bitcoin ends up with like 15 17% of the market, it's at 6% today. you're talking about million-dollar Bitcoin. So, you don't need much to get there over a 10-year period in terms of what could accelerate that time frame. Things like what happened recently where Bitcoin as a currency finds space in the world could significantly accelerate that.

[00:09:58]Progress on the regulatory front, if we do get good news on the Clarity Act, that would significantly accelerate that. But I don't think that much has to happen in order for us to get to that million-doll price target within 10 years. Again, just the market continues to need to go in the direction it's been going for the last 10 years. If you extrapolate that trend, I think we'll get there.

[00:10:19]>> And again, we're seeing this all play out in front of our eyes in real time.

[00:10:25]And yet so many people are bearish. This is so bullish. 12.2 2 trillion. Charles Schwab shares their Bitcoin, ETH, and crypto riskmanagement video. This is education they're putting out to their 12.2 trillion worth of clients. And I liked the senior ETF analyst for Bloomberg, Eric Belchunis. I liked his take on this revelation. He says, "Highle suitcoining here. This is how you talk to boomers. Mapping risk allocation to port allocation is smartprudent.

[00:10:57]limits nasty surprise potential and helps behavior. So, you might think this video is too basic, but this is how you talk to boomers. This is how you talk to the people with the trillions, and this is ultimately very bullish for money coming into crypto. Because they're so volatile, even small amounts could translate to much larger levels of risk.

[00:11:18]Let's look at a quick hypothetical example using Bitcoin. A theoretical investor with a moderate risk appetite might split a traditional portfolio 6040. 60% stocks and 40% bonds.

[00:11:34]Stocks consist of almost 100% of the risk in that portfolio because they're far more volatile. If that investor decides to add an even more unruly asset like Bitcoin, they might only want Bitcoin to make up 10% of the portfolio's risk. According to the Schwab Center for Financial Research, that investor might want to invest no more than 2.7% of their total portfolio in Bitcoin. An aggressive investor, say they typically put 96% of their portfolio in stocks, might be comfortable with 20% of the portfolio's risk in Bitcoin. That would translate to an allocation of just under 7%.

[00:12:13]Other cryptocurrencies like Ether are more volatile than Bitcoin, so you may want to consider investing even less.

[00:12:21]Bitcoin's volatility means it has an outsized risk. It's an exponential relationship, so small increases in Bitcoin holdings can lead to larger increases in overall risk exposure.

[00:12:35]Cryptocurrencies can be complicated and confusing for beginners. Start by learning the basics, understanding the risks and your own risk tolerance.

[00:12:44]Remember, if buying cryptocurrencies themselves is too big of a jump at first, you could consider starting with exchange traded products that include cryptocurrencies. Whether you're looking to trade crypto actively or take it on as a long-term investment, coming from a riskmanagement perspective can be helpful. Patience, discipline, and consistent learning can help you introduce crypto into your portfolio.

[00:13:11]So, do I suspect this rally will continue in the short term to the midterm? I suspect it is likely this rally continues. Don't be faked out by the big dips and then we'll just have to see if we dip harder in the fall. Hey, this week is your last chance to get tickets to Bitcoin Vegas. We will be speaking. A lot of big names will be speaking at Bitcoin Vegas at the Venetian. So, 10% off tickets. Use code altcoin daily. I'll link it below.