Bitcoin Dump 2022, when does it end?

Bitcoin will undoubtedly rise up faster than other assets once the macro economic environment improves.  CPI came back 8.3% down from 8.5%.  Real inflation is still 15% to 20%.  So the CPI number changes nothing.  Investors will have to look for scarcity during times like these when all assets are falling hard.  This chart below is helpful, Bitcoin is at the top as the most desirable scarce asset to own:

How long will this last?  It could be months.  When will inflation be at such a point, the economy, and stocks get so low that the Fed has to begin printing and quantitative easing again?  This also could be months.  It requires patiently waiting this out and NOT selling.  This next chart is from Bloomberg and represents the FUD (fear, uncertainty, and doubt) we see in the main stream media when Bitcoin skids through a bear market:

 

 

Many in main stream media are pointing to $20K as the low.  However, Bitcoin has never dropped to the previous cycle low before, during a bear market.  We understand the $20K sentiment.  However, there have been high volumes of buyers offering support in the $28K to $29K range.  This is represented in the next chart below:

 

 

The mayer multiple is a good metric for judging whether Bitcoin will bounce soon.  Right now Bitcoin is near the .68 mayer multiple level and could reach .50 or .60 or so, before a real bounce occurs:

 

 

All stocks are falling right now.  This will take a lot of time to work itself out.  The biggest question for us regarding 2022 is.  Will there still be a supply shock this fall regardless of global macro environment.  If Fed policy reverses and demand is still high enough (above 900 Bitcoin per day), then yes.  It is difficult to predict demand into the future.  We know the Fed will reverse course, just not when.  Same thing regarding the Bitcoin Spot ETF.  It is only a matter of when, not if it happens.  These things work themselves out over time.  All bear markets end, but take much longer than we all want.  Therefore, it is a waiting game at this point.  We need patience and perserverance!  We are not financial advisors and this is not financial advise.  If the Nasdaq cannot hold support in the 12,500 to 12,200 range and falls hard below that level.  Bitcoin coorelation to Nasdaq will increase, and that will bring Bitcoin into the $20K’s range.  We expect this unfortunately.  

Grayscale Bitcoin Trust is applying with the SEC to convert GBTC into a Bitcoin Spot ETF.  A lawsuit is being filled to make this happen.  Here is an opportunity for ALL Bitcoiners to make a difference.  Email the SEC and advocate in favor of GBTC to be converted into a Bitcoin Spot ETF.  This is a 240 day process and it starts here.  Click here to read more.

 

There is an end to this apparent bear market.  It started in November/ December after Bitcoin hit $69K.  The falling wedge or descending channel Bitcoin was in since then broke bearish.  We talked about that all spring that it was a possibility.  Now it is a reality we have to face.  Remember that the Fed will have to reverse course on quantitative tightening and rate hikes.  The SEC will have to approve the Bitcoin Spot ETF at some point.  It may take into 2023.  However, the sun will shine on Bitcoin again.  

 

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.