What will fuel the next cryptocurrency rally? According to Travis Kling, it’s “financial nihilism.”
The chief investment officer of Ikigai Asset Management recently went viral on X (formerly Twitter) with a thread called “A Lack of Pretense That Any of This S–t Does Anything or Will Ever Do Anything.” Throughout, Kling makes the case that investors stopped caring about the lack of use cases in crypto.
The commentary collected over 400,000 views.
“BTC Has Essentially A Free Walk To ATHs”
Kling does not give a price target for a new Bitcoin (CRYPTO: BTC) all-time high (somewhere between $75,000 and $180,000), nor a timeframe (sometime between now and the first half of 2025). But he sees the stars lining up like never before:
The Bitcoin halving is a few months out.
The Fed will likely cut rates a few times in 2024.
Spot ETFs “unlock safe access to BTC for trillions of dollars.”
His takeaway: “Crypto will have to do very little ‘work’ to get BTC into the high $60s.”
…As Does Ethereum
Kling says the same is true for Ethereum (CRYPTO: ETH), “just delayed by 3-12 months.” The SEC will be forced to approve a spot Ethereum ETF for the same reasons it had to approve spot Bitcoin ETFs.
Kling thinks it’s “quite unlikely” there will be no spot Ethereum ETF a year from now – August “feels about right” for an approval.
The key to his core thesis: “We’ve never had a setup like that before.”
Enter Financial Nihilism: “Why Not Put $500 Into A Memecoin That Could 50x?”
Kling says the quiet part of many a market participant’s approach out loud: “Up 55% and up 100%? What is this, a pump for ants???”
With all-time highs for the biggest assets taken for granted, investors look for even riskier, lower-market-cap-assets to get a chance at upward mobility. “Median home prices divided by median income is at a completely untenable level,” he says.
The result is the mindset that “it’s not like the $500 is enough to make any difference anyways.”
“This is the zeitgeist for young Americans,” according to Kling, and it is not difficult to see his point:
Anticipating memes and narratives is a key skill in crypto, say industry insiders.
Marketing stunts try to expose memecoins to a mainstream audience.
Meme stocks – like GameStop – are replaced by memecoins – like GameStop.
This zeitgeist is “a huge…
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