The Big Bitcoin Book Author on All-Time Highs: 'The Dam is About to Break'

Bitcoin’s rally to $93,000 Wednesday isn’t just numbers on a chart, according to The Big Bitcoin Book author Fred Krueger — it's a culmination of shifting tides in finance and the result of a fresh promise: The possibility of a U.S. Bitcoin Strategic Reserve.

Krueger joined Coinage to break down why he’s convinced that 2024 is shaping up to be a “perfect storm” for Bitcoin. For him, it’s more than just the recent political swing in the U.S. or ETFs attracting institutional cash; it’s about a new, unstoppable momentum he believes will put Bitcoin front and center.

“The election changes everything,” Krueger said. “It could have gone the other way. Had we had a different outcome in the election, we might be looking at $50,000, not $100,000. We have the best of all possible worlds for Bitcoin right here. We just added kerosene to the fire.”

A Different Market, A New Level of Demand

While it’s easy to fixate on Bitcoin’s latest ETF-driven price action, Krueger’s eyes are on the sheer scale of capital that could flood in from traditional finance (TradFi) as institutions scramble to get in on the action. He broke down the math: traditional U.S. financial market players sit on a staggering $100 trillion, but barely a sliver of that has touched Bitcoin.

“TradFi only owns about $100 billion worth,” he pointed out, the equivalent of a “toe in the water” at 0.1% of the total pie. “We’re looking at a $1 trillion inflow over the next, let’s call it, four years. And that’s if they move slowly. If this money’s coming in, you don’t really want to be the last guy in the pool.”

Now that ETF approvals have opened the door for this shift, Krueger’s message is simple: Wall Street is waking up. “Most people aren’t going to wire money to this thing called Coinbase and buy Bitcoin. Now they don’t have to,” he said. “The dam is about to break.”

The Bitcoin Strategic Reserve: Not Just Hype?

Krueger’s tone shifted when the conversation turned to one of the hottest ideas in crypto policy today: the concept of a U.S. Bitcoin Strategic Reserve. With Republicans now in control of Congress and a pro-crypto administration poised to make waves, Krueger believes it’s no longer wishful thinking. “It’s 100% realistic,” he declared. “It’s 100% going to happen.” He recalled being in Nashville earlier this year when Trump and Senator Lummis shared this commitment directly with the Bitcoin community. “This is happening by, I would say, March of next year.”

If the U.S. starts buying Bitcoin for its own reserve, it sets a precedent that would be hard for other countries — or individual investors — to ignore. “If the U.S. government’s buying it, obviously it’s real. If you’re a company, your company needs to buy Bitcoin. If you’re a country, your country needs to buy Bitcoin. If you’re an individual, you need to start front-running that as fast as you can,” he said, adding, “The fact that we have a strategic reserve is all you need to know.”

Krueger believes the anti-crypto sentiment that previously dominated parts of Washington is fading. “The anti-crypto army cost the Democrats the election. They’re going to pick different fights,” he said.

A Test of Patience, Not Trading Skills

For those tempted to time the market, Krueger’s advice was blunt: “If you think about trading Bitcoin, you’re in the wrong. You should not trade Bitcoin, period. Full stop, ever.” Instead, he sees Bitcoin as a long-term, once-in-a-lifetime investment and advises investors to focus on their overall portfolio allocation rather than short-term price fluctuations.

Krueger believes this moment calls for commitment, not distractions. “The biggest opportunity in your portfolio is Bitcoin. Don’t overcomplicate it.” He even recommends those who hold other altcoins consider selling them for Bitcoin. “It’s cleansing,” he said, adding that altcoin diversification might sound exciting but doesn’t hold up as a serious investment strategy against Bitcoin’s potential.

If investors are determined to dabble in other coins, Krueger suggests keeping those “fun” plays to no more than 10% of one’s portfolio — a hedge that keeps the focus on Bitcoin, the main opportunity in his eyes. “Think of it as entertainment and not investment advice,” he said.

A Tidal Shift in the Making

With the floodgates open for institutional money and new support from U.S. policymakers, Krueger is clear that Bitcoin’s time has arrived. The key, he emphasized, is to “brace for volatility” and take a position sooner rather than later, with the understanding that a storm of change is coming.

“Blue skies ahead,” Krueger smiled. But for those waiting on the sidelines, he warned, “The dam is about to break.”

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