Bitcoin Just Reacting to Monetary Policy

Yesterday we compared Gold and Bitcoin and pointed out that Bitcoin is currently taking market share from Gold.  On the graph from yesterdays blog we saw Gold price in Bitcoin, dropping.  This chart shows Bitcoin climbing as the USD gets weaker while Gold is actually falling off.  We have shown several graphs of other assets priced in Bitcoin falling off.  It is also true for Nasdaq, SPX, DJIA, other currencies.  Bitcoin eats every other asset because it is exponentially growing demand while supply was just cut in half at the programmed in halving on May 11, 2020.  See this chart with Gold in black and Bitcoin in yellow:

Here in the next chart you can really see how strong Bitcoin broke out since October.  We know it will retrace in the near term.  We urge our customers and investors to hold on to their Bitcoin.  When it does retrace, even up to 30% it will bounce and continue the bull run.  This halving in 2020 will be effecting the supply demand inbalance through 4th quarter 2021.  Perhaps into 2022.  There are differing schools of thought on how long this cycle will last.  Neutral ATM will ladder out: 10%, then 20%, then 40%, then 20%.  We will leave 10% in Bitcoin to HODL (hold on for dear life).  We know the next bull run will begin in 2023 or early 2024.  We watch the long term cycles and know supply demand is why Bitcoin is running in 2020.  It is extremely scarce.  Scarce assets have demand.  Unfortunately for Gold, Bitcoin is even more provably scarce.  Neutral ATM sold some of our Gold and bought Bitcoin and Ethereum 50/50 with it.  Gold is still a good safe haven, but nothing like Bitcoin.  See this graph really highlighting this recent Bitcoin breakout:

Next week we will look into selling Bitcoin without an internet connection. That question has come up recently and we would like to address it.  Next Blog will be Monday.  
 

Happy Thanksgiving! 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.