Christopher Wood, the global head of equity strategy at Jefferies, has revealed plans to book profits on his Bitcoin holdings once the cryptocurrency reaches $150,000. Currently trading at approximately $98,300, Bitcoin would need a 53% surge to hit this milestone.
Wood, who maintains a 10% Bitcoin allocation in a US dollar-denominated pension fund portfolio, initially invested in the digital asset in December 2020 when its price was $22,779. In addition, he holds a 5% stake in a Bitcoin exchange-traded fund (ETF) within his global long-only equity portfolio.
In his weekly note to investors, titled “GREED & fear,” Wood explained his strategy: “For those with a more tactical focus, or owning Bitcoin on leverage, GREED & fear’s view is that $150,000 is a good price level to start taking some profits since GREED & fear’s base case is that Bitcoin will rally three times in this post-halving cycle.”
Wood emphasized that his base case is not to trade these positions frequently, especially in the pension fund portfolio, but instead to hold them for the long term.
Trump Administration Sparks Optimism
Wood’s confidence in Bitcoin’s potential growth to $150,000 is bolstered by anticipated regulatory shifts under the incoming Trump administration. He highlighted recent developments, stating, “US President-elect Donald Trump has signaled a change of regulatory policy towards crypto at the Securities and Exchange Commission.”
Wood also pointed to the influence of Howard Lutnick, co-chair of Trump’s transition team and the nominated Commerce Secretary. Lutnick, who is also the CEO of Cantor Fitzgerald—a key player in the cryptocurrency market—has long been a proponent of Bitcoin and other digital assets.
Bitcoin’s Meteoric Rise Post-Halving
Bitcoin’s price trajectory has been remarkable, gaining 164% in the past year, climbing from around $37,000 to its current level of $98,300. This growth comes despite the cryptocurrency halving in April 2024.
Wood noted the historical pattern of Bitcoin’s price surges following halving events. After the first halving in November 2012, Bitcoin’s price multiplied 90 times within 12 months. The second halving in July 2016 resulted in a 30-fold increase over 18 months, while the third halving in May 2020 saw Bitcoin rise 7.5-fold within 11 months. Since the most recent halving in April 2024, Bitcoin has climbed 54%.
Bitcoin: A Digital Alternative, Not Gold
Despite his bullish outlook, Wood remains clear on Bitcoin’s role in the investment landscape. “Bitcoin is not a substitute for gold,” he stated, adding that it should be viewed as a digital alternative rather than a replacement.
While Bitcoin has gained significantly, gold has also demonstrated robust performance, rising by 73%, 54%, 50%, and 40% against the yen, renminbi, euro, and Swiss franc, respectively, since early 2023.
As Bitcoin continues its ascent, investors like Wood are watching closely, navigating the volatile but promising world of digital assets.
