Bitcoin Health Part 2
Volatility is in a low trough reminiscent of the 2012 and 2016 pre bull run time periods:
This is NOT a time to sell Bitcoin. Don’t let anyone panic you! Buy and hold. Neutral ATM is buying this dip down in the high $20’s. At this point in time we may have to pay low $30’s. We will be buying daily through Monday. Bargain basement prices! Bitcoin is a strong buy right before the heat of the bull market hits. We know there is fear with the Biden Harris administration coming in, but we are NOT deterred and will buy dips and hold Bitcoin. We know the number is going up! We can see that M1 money supply is still straight up and M2 money velocity is straight down. However, when this $1.9Trillion stimulus package is released, money velocity will increase. If these stimulus packages continue with regularity, as Janet Yellen has insinuated, then expect a V recovery in M2 money velocity. Here are those charts now on top of each other, click here to view M1, view M2.
When you look at the M2V graph, which is velocity of money, how fast a US dollar gets spent, you see a check mark at the bottom of the graph. If that turns in to a V. That will mean, stimulus from the Fed has become extensive enough that US dollars are getting back into the monetary system. Once that happens, inflation will go parabolic. M1 money stock, the top graph already shows, 2020 stimulus and QE (quantitative easing) has grown money stock or supply, by 22% just in 2020! If money stock grows the same way in 2021 or even more, AND M2V rebounds. Inflation will become rampant, out of control. Although that is not what any of us wants. It will bring on pain and suffering, but investors will sprint, sprint out of the US dollar. They will run to Gold, Silver, Bitcoin. Real Estate to a degree, Art, Classic Cars. Anything to get out of the dollar. Neutral ATM sees this clearly in 2021 and 2022. Janet Yellen and Jerome Powell hold the keys to this. We cannot predict how the senate and congress will vote on future stimulus. But if 2020 was any indication, which it is. We will get an accelerated version of what 2020 brought us. Of course, some outside event could change that. We see that as possible, but we cannot plan on it now. We have to plan on what we know. What we know is Democrats control all three branches of the US Government, and stimulus should increase over 2020 by a significant margin. That added stimulus will hit M2V hard, and likely cause this V recovery in velocity of money. If inflation ends up a lot less than we predict, investing in Bitcoin, Gold, Silver, and Art will still be a good idea. However, it will not have as good of returns compared to the scenario of massive stimulus in 2021.
Whether inflation in 2021 is 18% or 48% or in between is not extremely important. Any of these inflation scenarios will cause assets to rise in value. US dollar savers will be punished. We see a stock market crash in 2021. Many stocks at 30 to 60 P/E ratios are starting to go parabolic. This while Bitcoin dumps and attempts to re-accumulate in the low $30,000’s. We see Bitcoin as poised to be the fastest growing asset in 2021 and with even better growth than in 2020. The parabolic run of stocks is very reminiscent of the 2000 tech bubble crash. A parabolic run up into the bubble bursting. Bitcoin really appears to have broken the coorelation that plagued it a lot of 2020 with SPX and Nasdaq. Bitcoin is more likely to completely detach from the stock indices as it has done in previous bull runs. Bitcoin reverses course soo much faster than stocks and other assets do.
Case in point:
A reverse head and shoulders pattern possibly signaling a Bitcoin recovery. Buy it while its cheap! This will not last!
Neutral ATM sells and buys Bitcoin as little as $20 at a time! You do NOT have to buy an entire Bitcoin. 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.