- While the S&P 500 and other U.S. indices are reaching new highs, this is largely happening due to the push from the top 10% of stocks.
- According to the Kobeissi Letter, the top 10% of stocks in the U.S. have contributed 75% to the total market value.
- Keiser predicts that regulatory pressure targeting Bitcoin ETFs and local Bitcoin miners will continue, and this could lead to government seizures.
Bitcoin advocate Max Keiser is warning of a financial collapse reminiscent of the 1987 crash: How will BTC be affected?
Is a Financial Collapse Expected in the U.S.?
Earlier this month, the price of Bitcoin (BTC) rose above $50,000 after the successful launch of spot Bitcoin ETFs. However, despite the S&P 500 reaching historical highs by surpassing the 5,000 level earlier this month, macro indicators are sending warning signals.
While the S&P 500 and other U.S. indices are reaching new highs, this is largely happening due to the push from the top 10% of stocks. Seven massive stocks like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla have outperformed the performance of the remaining 493 companies listed in the S&P 500 index since reaching their latest low in October 2022, surging by almost 117%.
According to the Kobeissi Letter, the top 10% of stocks in the U.S. has contributed 75% to the total market value. This is the highest level seen since the Great Depression of 1931. During the 2001 Dot-com bubble, the concentration of the top 10% of stocks reached approximately 72%. Before the 2008 Financial Crisis, the concentration of the top 10% of stocks peaked at around 66%. On average, the top 10% of stocks represent about 64% of the entire stock market.
As a result, renowned Bitcoin advocate Max Keiser is warning of an impending financial collapse reminiscent of the 1987 crash. Keiser claims that Bitcoin will skyrocket to over $500,000 as investors seeking a safe haven from traditional market volatility flock to it. Additionally, Keiser predicts that the status of gold as a financial asset compared to Bitcoin will continue to erode.
In addition to the predicted rise in Bitcoin, Keiser anticipates that regulatory pressures targeting Bitcoin exchange-traded funds (ETFs) and local Bitcoin miners will continue, potentially leading to government seizures. He added, “If they can do it to Trump, they can certainly seize the Bitcoin in BTC ETFs and seize the U.S. BTC miners.”
The 1987 crash was influenced by various factors: Economic growth slowed in the first three quarters of 1987, and inflation increased. This economic backdrop, reminiscent of the stagflation period of the 1970s, raised concerns among investors. Moreover, the stock market experienced almost a 10% drop in the week following Black Monday, further heightening investor concerns.
BlackRock Hosts Digital Assets Summit
While Max Keiser opposes Bitcoin ETFs, BlackRock, the world’s largest asset manager, continues to attract fresh inflows to the iShares Bitcoin ETF. Today, BlackRock is hosting the Institutional Digital Assets Summit, a notable event in the financial world. This summit coincides with a period where BlackRock is focusing on its Bitcoin ETF, which has been highlighted as the top-performing ETF of 2024 and is currently considered the only digital asset offering in the market.
Essentially, the summit will serve as a strategic platform to introduce Bitcoin to institutional investors and is expected to function similarly to a regulated Bitcoin sales conference tailored to the needs of major financial institutions.
