Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.

Today we’re featuring the second part of our interview with financial advisor Tyrone Ross Jr., about how he approaches Bitcoin’s price and value to clients. If you’d like yourself and your business to be featured in an upcoming issue, click here to send us an email.

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INDUSTRY CHATTER

'Most Crypto-Foward' RIA Slams Bitcoin Forecasts From Michael Saylor, Others: 'Disvalues It To Me'

"I think that's a ridiculous number."

Tyrone Ross Jr. of 401 Financial didn't mince words when it comes to the hysteria around Bitcoin (BTC) in the lead up to $100,000. What really struck him was some of the price targets thrown around by Microstrategy (MSTR) exec Michael Saylor, among others, who floated the idea that the price per Bitcoin at $13 million was within reach for the largest cryptocurrency by market value. 

Saylor's predictions were among a plethora floated in recent months. From Wall Street analysts at Bernstein and Ark Invest's Cathie Wood to SkyBridge Capital's Anthony Scaramucci, who earlier this year called for Bitcoin to reach anywhere from $150,000 to $200,000 in the next 12 months to $1 million within a couple of years. 

“I wish we could all have his conviction," Ross laughed, in reference to Saylor's call for an even more ambitious price point.

That surprise is saying something. Ross describes himself as the "most crypto-forward RIA" in the country with a heavy bias towards Blockchain technologies and bitcoin. Ross has advocated for crypto inclusion in clients' portfolios going back nearly 10 years, but still finds this external commentary unsettling – though in the most positive way. 

"I’m not in it for $100,000, I'm not in for $13 million. If bitcoin reached $13 million I'd be disappointed," Ross told Benzinga's Chief Content Officer Brad Olesen in an exclusive interview, implying he’d expect the price to rise even further over time. "Putting a number" on Bitcoin is "disvaluing it to me," he said. "I would never put a price target on it because it is the ‘greatest flashlight and clock’ ever created.”

Tyrone's existential view about what the Blockchain and bitcoin can do for payment rails and "inequities" echoes what more and more voices are starting to relay about what cryptocurrency could represent.

Fed Chairman Jerome Powell, in his latest public remarks, compared bitcoin to “digital gold,” in an indication that it can be more than just electronic 0s and 1s or used exclusively for illicit activity. Gold has utility as an input in electronics, is often cited as a valuable tool to protect against inflation, is considered a safe haven asset, and a way to diversify one's portfolio. 

Despite the futility of putting a number on Bitcoin – "price predictions are silly to me," Ross added – it hasn't stopped the cascade of analysts and ETF issuers from providing their views going into 2025. Van Eck put targets on bitcoin, ethereum (ETH/USD) and solana (SOL/USD) just last week, among a host of other forecasts, including Donald Trump's incoming administration's stance on policy in the sector.

If you’d like yourself and your business to be featured in an upcoming issue, click here to send us an email.

MARKET RECAP

Wall Street's Santa Rally At Risk, Palantir Dethrones Nvidia, Consumer Confidence Pulls Back: This Week In The Markets

In a quiet week for economic data, Wall Street’s focus shifted to the possibility of witnessing a "Santa Rally," the seasonal tendency for stocks to rise in the final days of December.

Historically, the S&P 500 has gained 64 times in the past 96 years during the Dec. 24–Dec. 31 window, averaging a 0.85% return.

The market began the week attempting a recover from the Federal Reserve's hawkish signals of fewer rate cuts in 2024. Yet, renewed volatility resurfaced on Friday, casting doubt on the Santa rally's resilience.

Investors remain cautious, as markets weigh Fed policy outlook against uncertainty surrounding the incoming Trump administration's economic plans.

Still, 2024 is shaping up to be a banner year. The S&P 500 is on track to match last year's 24% surge, setting up a two-year gain of 55%, the strongest since 1999. U.S. stocks are also outperforming global markets by the widest margin since 1997, driven by the enduring strength of U.S. economic fundamentals.

On the leaderboards, Palantir Technologies Inc. (PLTR) has surged 360%, overtaking Nvidia Corp. (NVDA), last year's top performer, which gained 175% in 2024.

Consumer Confidence Slips

U.S. consumer confidence, as measured by the Conference Board, declined in December, highlighting rising concerns about economic conditions. A deeper drop in the expectations index, a key forward-looking measure, signals potential weakness in 2025 amid fears of persistent inflation and steady, high interest rates.

Tesla's Robotaxi Bet

Elon Musk envisions a Tesla Inc. (TSLA)’s robotaxi fleet allowing owners to earn $40,000 annually. Despite the bold prediction, experts question the feasibility of the technology and regulatory challenges, suggesting Musk's vision remains aspirational rather than immediately achievable in the near term.

Trump's Tariff Impact

Goldman Sachs projects the Trump administration will raise tariffs on Chinese imports, averaging a 20% hike, with higher rates for non-consumer goods. This could increase consumer prices by 1%-2%, strain industrial margins, disrupt supply chains and ignite Chinese retaliatory measures, the Wall Street firm says.

Cadillac EV Success

General Motors Co. (GM)’s Cadillac Lyriq, priced at $60,000, became its best-selling EV in 2024 through the third quarter. The premium EV's success highlights a potential shift toward luxury electric vehicles as automakers target higher margins and affluent buyers.

THE WEEK AHEAD

New Year and housing numbers in a slow week

Economic Data

• Monday: US pending home sales

• Tuesday: New Year’s Eve

• Wednesday: New Year’s Day

• Thursday: US construction spending for November

• Friday: US natural gas in storage

Earnings

No earnings of note due to New Year celebrations

Click here for the full calendar of economic data and earnings reports.

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