$40B in Bitcoin Traded Yesterday — Wall Street is Buying, Main Street is Selling

$40 billion dollar of Bitcoin changed hands in the last 24 hours. And sadly, it's mostly Main Street selling to Wall Street. So, the reason individual investors lose so much money is because the psychology of investing almost always leads you to do the wrong thing. So, if you're not a professional investor, if you do what your instincts tell you to do, you typically make bad choices. For example, most retail investors, and retail means everyday people who are not professional investors, they just have a Robin Hood account or a Fidelity or a Schwab account, and they're just basically, you know, day trading stocks or whatever they're doing. Um, so retail investors typically chase momentum, meaning they notice something that's going up, it's going up fast, and it's going up a lot, and they pile into it. And which means right now they're chasing things like gold and silver. They're chasing things like Nvidia. They're chasing things basically AI stocks. They're just chasing things that are just on a tear right now. The problem is that means by definition you're almost always buying those assets at a high price because by the time it becomes clear that something has momentum and it's going up, you know, doubling, tripling, quadrupling, um you're piling in after all the smart investors got in before that happened. And then of course shortly after you pile in it cools off it starts coming down or it gets boring and eventually as it comes down and it gets boring people move on and they realize that oh you know they bought gold at the wrong time they bought silver at the wrong time they bought Nvidia at the wrong time whatever it is and by the time it starts going down eventually they capitulate. They usually capitulate right before the reversal where it starts going back up again. But anyway, they capitulate because something else is going up a lot faster than whatever it is that they're holding. And so they sell whatever they're holding at a loss and then they buy the next thing that's doubled, tripled, or quadrupled already. Again, people just lose just billions and billions and billions of dollars that way. Retail investors almost always lose money uh doing that because again, their psychology tells them to buy things that are going up and their psychology tells them to sell things that are going down. Now, what you actually want to do is you want to find assets that are doing nothing that you're certain are not going to do nothing, meaning they're boring right now, but they're going to be super exciting. Or assets that are going down for no good reason, meaning you understand the fundamentals of the asset well enough to understand that the reasons it's going down have nothing to do with the asset or that they're temporary or they're going to reverse. You know, the catalysts that are causing it to go down are going to reverse and cause it to go back up. Um, so right now Bitcoin uh peaked uh for a few hours or a few minutes at $126,000 last year. The highest daily close was about 124. But regardless whether the high was 124 126, it has been going down or sideways since then, which was uh October 10. So since October 10, Bitcoin has been sideways or down. So that's you know October, November, December, you know, three months. Let's call it three months. For the last three plus months, Bitcoin's been mostly going down or going sideways and short periods of going up. Now, $40 billion dollars of Bitcoin changed hands in the last 24 hours. Now, if you look at it last week, the exchange traded funds bought more than a billion dollars of Bitcoin. Michael Sailor bought more than a billion dollars of Bitcoin. Hedge funds, nation states, um, sovereign wealth funds, all these things are buying billions and billions and billions of dollars of Bitcoin. The question is, if the price is not moving, and it's just mostly been going sideways in the, you know, high high 80s to low 90s. If the price is not moving and major institutions on Wall Street are buying billions and billions and billions of dollars of Bitcoin, the question is where are they getting it? They're getting it from mainstream investors that are capitulating. people that bought Bitcoin at 115, 117, 124, and now it's been going down and sideways and they're watching silver go on this crazy wild ride, which in my opinion makes no sense. Silver's monetary properties suck compared to gold and gold's monetary properties suck compared to Bitcoin. So why would you not buy the apex predator that ultimately wins in the end instead of the shortrun flash in the pans, which I think silver is a shortrun flash in the pan. It's not that hard to mine more silver. So if you know the world needs more silver, they'll they'll mine more silver. It's not that hard. Um so anyway, um so people are selling Bitcoin to pile into silver, for example, which makes no sense because again, they're selling Bitcoin when it's down to buy silver when it's up. And you know what they're going to do? as soon as silver starts crashing, they're going to sell silver when it's down and they're going to buy Bitcoin when it's up, thereby losing you, you know, losing out on every trade. Now, you can uh, you know, James Czech talks about this a lot because sometimes you can tell, not always, otherwise it would be a, you know, good predictor, but you can usually tell if you look at the history of Bitcoin, um, people are always using leverage at the wrong time. So as the price gets overheated, more overheated, more overheated, eventually they do 10 to one, 20 to1, 40 to1 leverage right at the top and then they get wrecked when the price starts going down because if you get 40 to1 leverage then the price goes down 2 and a half% you get liquidated and you lose all your money. So they typically use leverage at the wrong time on the way up and then they will try to you know buy in as it goes down as it goes down as it goes down they'll try to long the bottom. and they'll try to buy what they think is the bottom with leverage. So they'll buy what they think is the bottom at 110, then they'll buy what they think is the bottom at 95s, then they'll buy what they think is the bottom at 85. Finally gets Bitcoin gets down to 81,000 and they're like screw this, it's going to zero. So right at the wrong time, like $81,000 most recently, they go maximum short, meaning they short the stock betting that it's just going to keep going down. And they tend to do that right at the wrong time, which is they short it right near the bottom. And so their their portfolio has just gotten blown up, blown up, blown up, blown up all the way down. And then they short it at the bottom. They flip from, okay, I'm done. I'm done buying Bitcoin. I'm I'm going to short it and bet that it's going to keep going down. And they usually flip right at the bottom. And then they get wrecked and wrecked and wrecked and wrecked all the way up. So they just get I mean they just wreck themselves all the way down and then they wreck themselves all the way up and then as soon as they're uh you know positive it's time it's you know they're done shorting it they're getting wrecked so many times on the way up that they're like screw this I'm going long again meaning betting it's going to keep going up they usually flip and bet that it's going to keep going up right when it's about to start going down again and then they get wrecked and wrecked and wrecked all the way down again and it's just human psychology. So the best way to make money in investing is to find an asset that is on sale. Buy it when you understand the fundamentals of that asset well enough to understand that eventually it will not be on sale and eventually it will be many times its current price and then buy as much bit of that asset as you can. In my case, the only asset that I feel good about buying as much as I can right now is Bitcoin. Stocks are expensive. Bonds, we not invest in bonds right now. Uh precious metals are ridiculously overpriced depending on who you ask, but I would say ridiculously overpriced, especially silver. And uh you know, real estate's overpriced. Everything's overpriced. The world like everything is setting record. Everything's crazy multiples. The one asset right now that you can buy on sale that has absolute fundamental properties that guarantee it will eventually be higher in the long run is Bitcoin. the monetary properties of Bitcoin. It is more div divisible, durable, portable, uh fungeable, authenticable, and most importantly scarce. It is more all of those six properties than any other asset in the world. Way more than gold, way, way, way, way more than silver. Bitcoin's monetary properties absolutely dwarf anything else in the universe. Nothing's even close. And when you understand that and you look at the price of Bitcoin, you can tell that, hey, the only reason the price is down is because Wall Street is buying and Main Street is selling and Main Street is suppressing the price of Bitcoin. So, it's funny because everybody's always complaining that Wall Street's suppressing the price of stuff. Usually, it's the reverse. Usually, Main Street, it's the dumb Main Street investors that are selling what Wall Street is buying. Wall Street is not suppressing the price of Bitcoin right now. Wall Street is buying as much Bitcoin as they can because Wall Street is taking my advice even though they're obviously not listening to me. They're listening to people like Michael Sailor and you know numerous others on Wall Street. Uh Larry, you know Fink. They're listening to everybody uh on Wall Street. The biggest money managers of the world are telling everybody buy Bitcoin. And so Wall Street firms are buying Bitcoin. And meanwhile, mainstream investors are staring at their Robin Hood portfolios and Coinbase accounts and saying, "Oh, the price is down. The price is stagnant. just going nowhere. I'm missing out on exciting investments in AI or in silver or in gold. And again, they're selling Bitcoin when it's down to buy something else when it's up, which is the opposite of what you're supposed to do. So, the uh the antidote to that is find an asset that nobody else wants right now or that seems like the price is down and suppressed, but for which you know the price will eventually be much higher. Bitcoin, in my opinion, is that asset. Then you buy as much bit of that asset as you possibly can. And then you patiently wait for the world to figure out what you already know, which is that eventually that the the world will recognize that that asset is a lot more valuable than it is right now, and the price will go way higher. So same formula as always, buy as much Bitcoin as you can, hold on to it for as long as conceivably possible. In my mind, it's the only major asset class that's significantly on sale right now and the only one that I would buy more of if I had any US dollars that had not already been converted to Bitcoin. Um, great time to buy Bitcoin. I don't see that changing. Uh, you know, I mean, it's always a good time to buy Bitcoin. Um, but at some point it's going to go on a huge run and it's not going to be nearly as on sale as it is right now. And then, of course, you too will think, "Dang, I should have bought way more Bitcoin when I when I could have," which is what everybody does. And again, you'll end up buying it when it's, you know, comparatively expensive as compared to now. And you'll probably be selling an asset that's down to do that, which is the opposite of how you make money in investing. Buy an asset you know, that you like, that you love, that you understand, and hold on to it for as long as conceivably possible. That's how people make money in investing.