Bitcoin Reaching $1.5M Is 'Never Gonna Happen,' Trader Says

Michael Saylor as he's buying more Bitcoin as it goes up, he's selling his company's shares, Mst R Micro Strategy. He's been selling it. So his plan to me is very clear. Pump up, MST R right? Sell MST R stock. So he ends up owning nothing of the company and then whatever happens to the company, whatever happens to Bitcoin doesn't matter to him because he's already cashed out. So never making decisions based on what other people are doing. It's Tuesday, March 26th, 2024 and this is Markets Daily a show where we get into the minds of some of the smartest and most experienced investors, traders and analysts. I'm Jen San Nai. Before we get into our discussion today, let's take a look at today's prices according to coindesk indices at 8 a.m. Eastern time. Bitcoin was up over 5.5% and at $70,632 either was up about 5.5% also at $3630. And the Coin Desk 20 index was up, surprise surprise just about 5.4% at 2731 points for more on the market's action. Let's bring in the founder of live traders.com and we'll sing and we welcome to the show. Thanks for having me looking forward to chatting with you. I'm looking forward to this discussion too because you are a trader and we don't often have traders who are trading every day on this show. We talk to a lot of analysts and experts, people who are watching the markets, but you are right in the thick of it. Now, let's just start off with what's going on in the markets this morning. You heard me read those prices. What are you watching in traditional markets and crypto markets this morning? I think traditional markets. The focus is really on Tesla at this moment because that's one of those stocks that hasn't moved yet. And uh Kathy Wood of Ar ETF, you know, she's been, I think she bought 28 million more yesterday of Tesla stock. So she's been really accumulating and the full self driving is rolling out. The Tesla is actually opening higher today. So that's going to be my top focus from the traditional market standpoint uh to be trading Tesla this morning on the upside. Tell me a little bit more about your focus on Tesla. You mentioned uh Kathy Wood of Arc Investments. How closely do you watch Kathy Wood and other folks like Kathy when you are deciding what to put your money into? So I've usually kind of gone the contrary to Kathy for a really long time, but I think this time she's getting it right again. And I think that's gonna be the resurgence of her ETF. I mean, her ETF has been destroyed over the last few years because of a lot of her holdings like Roku and Zoom got crushed. But I think now that she's accumulating Tesla such heavy heavily, I think when that starts to trend up, I think that's gonna cause our ETF to also go up. So for Tesla, I mean, I think there's so many catalysts around the corner, right? Uh Elon talked about the Tesla Roadster collaboration with space with some rocket technology that's brand new. Nobody's ever seen that before. That's interesting. I was gonna ask you, you know about Elon Musk himself, what's going on with X and he just General Antics? But you think it's not gonna matter because of Tesla's business. Tesla is in its own business. It's a big monster, right? I mean, it's a, it's in its own league at the moment and uh as you can see other EV manufacturers are dropping out of the race, so Tesla's pretty much the sole winner left right in this space. L It is not really doing well. Rivian is not really doing well. Uh I think Fisco just got delisted yesterday. So there's who's left, it's only Tesla left and that has a big margin in that area and then they control the whole supercharging network. So I think there's going to be also consolidation in the sector where the smaller charging companies like charge point, blink charging evgo they eventually could be acquired. So Tesla will end up controlling imagine some company controlling all of stations in the United States. That's basically what's going to happen with Tesla. They're going to control the whole charging stations and the charging manufacturers. Speaking of Kathy Wood, I have to ask you since the show is focused on crypto markets, I believe that Kathy has a $1.5 million price target for Bitcoin. I would love to get your perspective on the Bitcoin ETF S and then spot Bitcoin itself. I know that you don't hold any Bitcoin. Um But what's your perspective there? You know, I really am not a big proponent of giving these ridiculous targets that people throw out. I mean, we've been hearing that since Bitcoin came out, it's gonna be a million dollars 1.5 million because you know, the targets are really based on your own emotion. There's nothing really to price it at, right. There's nothing intrinsically that you're using to value Bitcoin. So I usually as a technical trader, I like to pick OK, what's the next target? Right? So for me, Bitcoin, I think is going to $84,000. So I think that's the next target. Once we get there, then technically, we can evaluate it and pick the next target, which might be 100,000. So I like to trade in increments rather than just throwing out these big targets that really have no basis. In reality, like $1.5 million of Bitcoin, it's never gonna happen. You know, if you take that to the bank never gonna happen. Uh I do like crypto, I'm not anti crypto at all. I do have an investment in the crypto space. Uh But I'm looking at the promise of crypto, right? The promise of crypto was it's gonna tokenize everything, tokenize real estate, tokenize stocks, bonds, right? And it's actually gonna be used in real world cases. So for me, that is the only barometer that I use to make investments in the crypto space on what's actually gonna be used rather than, you know, people are gonna buy, there's gonna be having. So all these things are like things that are gonna happen with the technology, but like how is going to be used? And nobody's ever been able to answer that question for me. Uh So for me, I only focus on that when I'm making investments in the space. That's really interesting. I think, you know, some of the folks who invest in Bitcoin, some of the people who I've interviewed on the show might point to some of the developments on the Bitcoin Blockchain that are happening. Now there's, you know, uh more movement on the Bitcoin Blockchain than ever before. More development happening there. Some are looking at Bitcoin as um a store of value similar to gold saying that it could be digital gold in the future. What are your thoughts there? So my thoughts there are, you know, obviously it's currently based on belief and if people keep believing, then yes, if the price will go up and uh the price should not be the barometer though because people's beliefs should never be trusted, right? People are fickle minded. We see the next shiny object we move on. Then it's a I then it's marijuana stocks, right? Then there's something else. So there's always these trends that happen in the markets. Now, Bitcoin, I could be wrong like I'm going to be humble enough to admit I could be wrong. I have been wrong so far, but I am kind of people would hate me for that, but I'm kind of in the Peter shift camp at this moment. It's like what's the intrinsic? Those are fighting words on this show. People are gonna come for you in the comments and ma bring it on because I would happily have this discussion on store of value something you need to have something to store number one, right? And then the other thing is price cannot be the barometer because the argument that people make is, but look at the price has gone up. I'm like, yeah, I could show you marijuana stocks A I stocks that have gone up doesn't mean those are store of value, right? So store of value needs to be there. Something needs to be stored and the demand needs to come from something inherently apart from just belief systems. So there's other cryptocurrencies that are being used. So when something is being used, that creates the demand, right? And that's why the scarcity actually matters. But in the absence of true demand, the scarcity is just belief based scarcity. Now again, I would love to be proved wrong because I am in the crypto camp. I do think we need this technology to revolutionize the way we do business right now in the world. So I'm in the pro crypto camp, but I'm also in the camp of if there's other faster, better technology, then why not use that? Do you hold any crypto? I do I have I hold Al Goran. That's my only Cryptocurrency that I hold. And I, again, I was anti crypto till like 2000 and probably 19. And then that's when I started really delving into it. I spoke to tons of professors at mit work in business school and I really chatted with them about OK, what can actually be used? What do you guys think like, I'm not that smart, right? I'm a trader. I'm an investor. I'm not a technology guy. So you guys tell me and there was a pretty big concessions, at least in the academic world of Al Goran, right? Being the core technology that could actually be used and it's actually is being used, right? There's lofty A I there's tons of websites that are tokenized real estate now on Algo and Blockchain. I mean, you could literally buy a slice of properties now and you get paid rent daily, right, daily. Deposited into your crypto. That's the promise of crypto, right? And then there's uh countries like Afghanistan and all these countries that have these apps now called Hyssop Pay, which is also built on Al Goran that people are using every single day to transact with it. Do you have a price target for Al? I do? Uh, so my short term target at least like if 2024 is going to be about 58 cents, right. That's just a short term target for this year. And I'm being very conservative with that target. I think currently it's at 28 cents. Uh, it went down as low as eight cents. Uh, but the long term target when it comes to, let's say 2030 I think it's gonna be at par if it just reaches the market cap of Solana. Right. That's $10 right? For Al Goran. So Algon has been ignored for a really long time. Um, I think it's one of those hidden gems that people will talk about in the future. Uh, they're perhaps not talking about it now. So I think for me, I see a pretty big risk reward potential there. Uh, where, you know, if you were buying it at 9, 10, even 20 cents, 25 cents, that's, let's say your risk, right? But the reward is pretty much bigger. So I'm looking at where there's still potential. Not the boat that I've missed, not the boat that I, you know what's next? And I think that is gonna be the next big thing, in my opinion. What's the biggest mistake? You see traders making? I think the biggest mistake is literally what I just touched upon is people getting into camps. They're trading emotionally, right? It's almost like um it becomes like a cult type of personality where I'm in this camp and I'm in that camp, you know, and I think that's the biggest mistake people make is trading based on emotion trading based on feel and not looking at things objectively. They're very subjective. I read this article. So that means I'm gonna buy this or Michael seller is buying. So I'm gonna buy this. So they're making their decisions based on other people, but they don't know what other people have in mind. They don't know. Then Michael Saylor as he's buying more Bitcoin as it goes up, he's selling his company's shares. MST R Micro Strategy. He's been selling it. So his plan to me is very clear. Pump up MST R, right? Sell MST R stock. So he ends up owning nothing of the company and then whatever happens to the company, whatever happens to Bitcoin doesn't matter to him because he's already cashed out. So never making decisions based on what other people are doing. You need to have your own trading plan and own thesis because that's what gives you the confidence to ride the bear markets and the bull markets when you're so confident in your own abilities and your own research. And, well, thank you so much for joining Markets Daily and sharing your perspectives here with us today. Thanks for having me. That was the founder of Live traders.com and we'll sing. That's it for today's show.