Bitcoin and USD Hegemony!

Regardless of how anyone may feel about Vladimir Putin.  The act of freezing all Russian assets held in the US and not allowing Americans to transact with the Russian central bank, national wealth fund, or finance ministry has led Putin to say this, click here to view on twitter.

 

Now we see Saudi Arabia negociating the petroyuan with China.  This means Saudi Arabia and China transacting Oil in Yuan.  We see Russia selling Oil to friendly countries in Rubles or Bitcoin.  Not USD.  The days of the USD hegemony are ending soon.  The US could quite possibly lose its global reserve status far sooner than anyone predicted.  However, this does not have to be bad for you.  Hide or store your wealth in a scarce asset like Vladimir Putin is saying above.  The moves the US made could ultimately turn out in a positive way when coupled with the friendly EO on Bitcoin and Cryptocurrency.  By regulating Bitcoin and not trying to ban it the US is now embracing it as an alternative currency.  Russia is also embracing it as an alternative currency to the Ruble.  Bitcoin scarcity, decentralization and seizure resistance will keep it pumping as the after effect of Russia ending dollar hegemony and going after NATO.  Those were two reasons for the Ukraine invasion.  There are others we would rather not discuss.  USD Hegemony however, is a game changer for global macro. 

 

CBDC will come along much faster because of this, in 2022.  Bitcoin will be re-priced much higher because of this, also in 2022.  There is no need to make predictions, this situation is fluid.  We do know that the BRIC nations are onboard with ending USD Hegemony, and more details will be coming out to prove this in the future.  For now, lets focus on the US going forward.  The 5 year bond yield and 30 year bond yield have now inverted for the first time since 2006.  Everytime this has happened the US economy has slipped into recession within 2 years.  See this chart below:

 

 

Each recession is the greyed out vertical line.  So between now and eoy 2024, we expect a major US recession.  This asset bubble in stock and real estate is so big, this recession could dwarf 2008-2009.  If the Fed contains rate hikes to 25 bps and keeps them quarterly it may kick the can down the road into 2023 before the onslaught really starts.  Will this effect Bitcoin and how?  Yes, we think it will eventually hit Bitcoin and hurt it.  However, Bitcoin will find a V bottom and recover much faster than stocks and real estate just like it did in March 2020!  When this crash does begin, we see 10 year yields dropping and QE starting up again in earnest.  These are the moves that really sparked the 2020 bull run into November 2021.  Below is a predictive chart about future 10 year bond yields:

 

 

Below are some charts from Lyn Alden.  The first one shows the non federal debt compared to federal debt and illustrates how fiscal policy is catching up to non federal debt.  The second chart illustrates how inflation is running so hot.  The monetary base in the US is growing out of control since the pandemic began, yet even after the lastest rate hike, interest rates have a long, long way to go to catch up with inflation.  Real yields are extremely negative and pension funds are feeling this now.  See the charts below:
 

 

Mr. Wonderful from Shark Tank said in an interview with Roy Neiderhoffer who is a hedge fund manager, that if sovereign wealth funds in UAE, SA, and Qatar get the green light to invest in Bitcoin with all of this regulatory framework being given by the US now.  Bitcoin (with just a 1% to 3% investment from sovereign wealth funds could get a $750K boost in price action.  This could happen sooner than most think.  Now is NOT the time to shy away from a Bitcoin investment.  Institutional investors have been pouring in to Bitcoin, and with the regulatory clarity recently given.  The flood could start soon!  Short term Bitcoin holder cost basis is now positive for the first time since early December and that has caused a big pump for Bitcoin.  See the break out of the price and RSI triangle in the second chart below:

 

 

 

Bitcoin is getting coming back on the stock to flow model a little bit.  We know it has a long way to go, but with USD Hegemony ending as it is right now, Bitcoin could catch up pretty fast.  We need to keep watching the stock to flow.  It is not going anywhere:

 

 

Inflation is humiliating and humbling for many.  It is creating Bitcoin believers by the millions, and price action has now broken out of the $46K resistance level, plagueing Bitcoin since last year.  Fiat currencies are under increasing stress as inflation mounts across Europe and North America.  The Bitcoin lifeboat awaits and adoption is growing by leaps and bounds.  Stay open minded look into Bitcoin.  This bull run is not over, Bitcoin has broken out.  Get invested while it is still affordable.  Inflation is NOT going away.  USD Hegemony failing as it is now, is not slowing down inflation and neither are the little 25 bps rate hikes from the Fed.  Humble yourself, otherwise, Bitcoin will humble you:

 

 

Remember, we are not financial advisors and this is not financial advise.  The Nation States, Presidents, Prime Ministers, Institutions like Black Rock all adopting Bitcoin.  They are jumping on the life boats to escape inflation, and censorship through USD Hegemony and Globalist intervention into fiat currency.   Dollars and stocks will no longer grow in your retirement account.  The digital economy is here, and Bitcoin is paramount to survive. 

 

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.