Bitcoin at $100K: Here’s Jeffries Chris Wood’s Advice to Crypto Investors

Christopher Wood, global head of equity strategy at Jefferies, announced his intention to sell his Bitcoin holdings once the price reaches $150,000, which represents a 53% increase from current levels. Wood has currently allocated 10% of his global US dollar-denominated pension fund portfolio to Bitcoin.

As of Friday, Bitcoin (BTC) reached a high of $99,300, just below the expected $100,000 threshold following the US election. Wood initially invested in Bitcoin for a retirement fund portfolio in December 2020, when the price was $22,779. He also owns 5% of a Bitcoin exchange-traded fund (ETF) in his long-only global stock portfolio.

Wood emphasized that he does not intend to actively trade these positions, especially in a pension fund portfolio.

For those who are more tactically oriented or own Bitcoin through leverage, the GREED and Fear point of view is that $150,000 is a good price level to start making some profits as the GREED and Fear base case scenario is that that Bitcoin will rise three times in this cycle after the halving. as the trend has been that capital gains from holding Bitcoin have been cut by more than half after each halving cycle,” Wood opined in his weekly GREED and Fear piece.

Wood’s strong belief in Bitcoin’s potential, despite current market conditions, is supported by the expectation that prices will rise to $150,000.

This optimism is based on the expectation that the new administration under President-elect Donald Trump will pursue more favorable regulatory policies towards cryptocurrencies, as evidenced by potential changes at the SEC.

“It’s also worth noting that Howard Lutnick, co-chair of the Trump transition team and Trump’s pick for Secretary of Commerce, is also a supporter of Bitcoin and cryptocurrencies. It is also the case that Lutnick is the CEO of Wall Street firm Cantor Fitzgerald, which is one of the primary custodians of the world’s largest stablecoin, Tether, in terms of where it stores its dollars,” Wood wrote. growth over the past year has increased by 164% from approximately $37,000 to nearly $98,300. This growth comes despite the cryptocurrency halving in April 2024.

The Rise and Fall of Bitcoin

Historically, Bitcoin has seen significant gains following previous halvings. After the first halving on November 28, 2012, Bitcoin’s value increased approximately 90-fold over the next 12 months. The second halving, which occurred on July 9, 2016, resulted in a 30-fold increase in value over the next 18 months.

After the third halving on May 11, 2020, Bitcoin’s value increased 7.5 times in 11 months, peaking in April 2021. By November 2021, Bitcoin had increased eightfold, reaching an all-time high of $68,992. Since the last halving on April 19, 2024, Bitcoin has continued to rise by 54%, reaching $98,300.

Bitcoin rose 4% in the last 24 hours, peaking at $99,314.95 during Asian trading hours, according to Coinmarketcap. The lowest point of the day was recorded at $95,656.35. Bitcoin’s total market capitalization approached the $2 trillion threshold, but was capped at $1.97 trillion that day.

Wood’s Bitcoin Advice

Bitcoin experienced a sharp rise in value following Donald Trump’s victory in the US elections, cementing his position as the next President of the United States. Earlier this year, Trump expressed support for cryptocurrency assets. His support was further bolstered by the vocal support of Elon Musk, widely regarded as a significant proponent of digital currencies on a global scale.

Even with the recent price increases, Wood argues that Bitcoin should not be seen as a replacement for gold. Since the start of 2023, gold has seen significant price gains against major currencies, including 73% against the yen, 54% against the yuan, 50% against the euro and 40% against the Swiss franc. Instead, Bitcoin should be seen as a digital alternative to traditional assets.

“Ignoring cryptocurrency is becoming risky for many institutional investors who have not yet focused on it. That’s because the Trump administration’s seeming support for the idea means it’s about to go mainstream. However, GREED and fear view Bitcoin not as a substitute for gold, but simply as a digital alternative,” Wood wrote.