FOMC meetings will decide everyone’s fate, better get some Bitcoin

On Wednesday at 2 the FOMC meeting starts.  At 2:30 Fed chairman Powell speaks.  Below is a chart showing the SPX dropping to the support at last October’s lows:

This is a warning to the Fed.  Blackrock chairman Larry Fink warned the Fed last week not to get too hawkish with rate increases.  Remember, 2022 is an election year.  Neverthless, Bitcoin also dumped to $33K this morning early.  We bought the dip!  We will buy more today as well.  We think it could drop to $30K and we may delay our second buy for that to happen.  But, usually we don’t hold for long.  Not worth it!  There is massive support for Bitcoin between $30K and $31K.  See this chart showing the support at the .618 fibonacci support level:

Then consider the illiquid supply of Bitcoin right now.  The gap between price and the illiquid supply level in Bitcoin, which is the amount of Bitcoin being held and not sold, has not been wider than this.  Whatever bottom Bitcoin finds and bounces off of is likely the launch pad for the second leg of the bull run!  See the illiquid supply chart below:

Historically, Bitcoin has bounced off of drawdowns, or dumps of 50% or greater for many years.  In the following years there have been 50% dumps, 2011, 2012, 2014, 2016, 2018, 2020, 2021.  Riding the volatility out and buying at each bottom is the best move you can make.  Welcome the volatility, buy these bottoms!  This has worked really well for us, and it will work for you:

Now we will speak on future global macro events.  The FOMC meeting is this Wednesday.  Chairman Powell will speak at 2:30 EST.  We expect either no rate hike, or a small 25 bps rate hike.  The environment is tense, markets are tetering, rate hikes will obviously push them over the edge.  Not hard to see that.  However, consider this.  National debt is $30Trillion.  National debt service is $550Billion per year, right now.  If the Fed raises 10 yr treasury bond rates to 3.2% over the next year or so, national debt service would climb to $1.1Trillion per year.  Yet, new debt accumulation in the US is $3Trillion per year.  Without stimulus being passed.  Raising rates would not move the needle.  Rates would have to be double digits like the 70’s and stay there a really long time to make a difference.  Obviously, that would absolutely destroy the economy.  Powell cannot afford that, Biden cannot afford that.  At some point, in 2022, QE will come back, money printing will begin anew.  It’s an election year.  That will NOT be ignored!   This could catapult Bitcoin into the stratosphere until critical mass is reached.  Hard to say what that critical mass could look like.  IF the the USD is worthless by 2032, in ten years.  This is what Bitcoin could look like:

Remember, in blogs from last month we have gone into detail on the central banks.  The Rothschild banking family owns many of the central banks, globally.  Yet, they are buying up massive shares in Greyscale Bitcoin Trust, click here to view on twitter.

 

We realize, it is possible Rothschild Investment is only buying up Bitcoin to dump it on the market in large quantities to attempt to hurt it.  Due to it’s competition to the USD.  It could also be an accumulation play.  As  illiquid supply keeps climbing, miners are not capitulating, or illiquid supply would be going in the opposite direction, there is less Bitcoin in supply to dump.  Retail holders of Bitcoin, like Neutral ATM are not selling.  When supply dries up, miners have not had to capitulate yet, it can cause a reversal, and we are starting to see that today:

Massive bullish divergence with higher lows in the Bitcoin price and lower lows in RSI (relative strength index).  A bullish divergence is a strong signal for a reversal.  The FOMC meeting will have a big impact on Wednesday, and nobody knows exactly what will happen yet.  Bitcoin will keep dumping at different times, yet the lows are always higher:

So, do NOT be emotional about a dump in the price.  Keep in mind these S curves have to happen because Bitcoin adoption comes in waves along with the emotional appetite of investors to take risk.  We are not giving financial advise, and we are not financial advisors.  However, the crossroads the US and many other countries are at, is difficult.  Since the USD is the most dominant currency, and the world reserve currency, the Fed cannot make a major mistake here:

 

They may raise rates in March and announce on Wednesday.  But they cannot do that for very long.  Our bet is on QE and money printing just like after the tapering (project twist) in 2010, and late 2018.  In both cases the Fed reversed, printed money, and that lasted for years before they considered tapering again.  Tapering never lasts, it always leads to a sharp sell off.  So watch for the FOMC announcement.  If you can afford to risk it, hold your money in the ready until then, if they do go 25 bps or worse, Bitcoin will dump.  Which means another dip to buy.  The whole economy is controlled by the Fed.  The emporer has NO clothes, we can see behind the curtain, and this is why we need Bitcoin, longterm!
 

Neutral ATM is here to get everyone off of zero Bitcoin.

 

Give Neutral ATM a try.  We have low rates, convenient locations and we are expanding. Contact Neutral ATM, we will answer all your questions about Bitcoin and using our ATM machines. Find a Neutral ATM Bitcoin machine location near you.