Bitcoin strengthening as the USD is slowly getting Crushed!

Russia is now trading Oil for Rubles to all unfriendly countries, which it deems the US and Europe, click here to read more.

 

India is trading Oil for Rupees.  Saudi Arabia is still working on their deal with China to create the petroyuan, thereby trading Oil for Yuan.  Everyone must get out of the Dollar now!  It is getting urgent!  Today, we were wiring into our exchange account to buy up Bitcoin.  It took 3 times longer than usual!  Maybe that is nothing.  We are concerned for the US Banking System.  Therefore, we will focus on global macro.  

 

Let’s start with the 10 year treasury yield: 

 

 

We believe at some point the Fed will not be able to continue with the rate hikes.  We may see two, three, perhaps four hikes.  Then, a reversal would ensue and the long bond yield would come back down like this 30 year trend suggests.  However, if that does happen, and we believe it is likely what does that do to the dollar?  We think the dollar will come down from it’s recent trend, however we cannot say how long this tightening will last.  We still doubt the Fed can keep this up for the entirety of 2022.  The markets WILL react.  Not just stocks, the real estate market as well!  Perhaps the rate hikes remain through 2022.  We have to wait and see, we doubt it.  This path the US Fed is on, is 100% unsustainable.  We gravely expect a market crash.

 

Below is the best run down we have seen of what may happen over the next few years:

 

 

We do not know how Bitcoin would react to a deflationary stock market crash from 2022 to 2024 of 50% +.  It has not happened since 2009 when Bitcoin came out.  We can see Bitcoin climbing now until this crash, perhaps in the fall?  Perhaps in 2023?  Timing is impossible to predict.  When stocks do see a deflationary crash we can see Bitcoin reacting.  But then a V bottom recovery and complete decoupling from stocks later on.  

 

Fed total assets on the balance sheet is right at $9 trillion:

 

 

Raising rates like this into a deep recession will not be possible.  Thereby, forcing the Fed to reverse course at some point in the future.  This reversal, we believe could lead to hyperinflation.  Here is Jack Dorsey on that subject:

 

 

Of course his tweet was censored by the company he founded, Twitter.  How ironic!  By the way, if the US saw 50% annual CPI inflation there would be riots in the streets in every major city.  12,974% official annual hyperinflation rate is not accurate.  Hyperinflation will start much sooner than that inflation rate.  Below is a 4 year old article about what Cypress did when their currency hyperinflated, read more and view on twitter.

 

They turned to Bitcoin, like Russia and Ukraine are both doing in terms of retail adoption.  In addition, we see El Salvador and Ukraine have made Bitcoin legal tender, Malaysia is voting on it becoming legal tender, Mexico, Paraguay, Turkey, Argentina, and today Honduras announces a vote to make Bitcoin legal tender, view on twitter.

 

We cannot afford to wait for bank bail ins like Cypress saw, to get our legal tender that we trade in, over to Bitcoin.  Cypess natives saw their bank accounts at 30% after the bank bail in completed and their accounts were opened back up!  The dollar is crashing, slowly.  The time to act is now.  Financial Institutions, Nation States, even some Pension Funds are buying up Bitcoin.  

 

In terms of real estate we saw where the Fed now owns 33% of all housing being purchased or built.  That is being done through Blackrock.  With QT (quantitative tightening) being bantered about by Fed Chairman Powell lately, expect rental income to come down along with Fed held mortgage backed securities.  While Fed Fund rates start to climb.  That is NOT GOOD for real estate.  We are not experts in real estate.  It has been a great investment, we believe real estate investment may become tough in the 3rd and 4th QTR 2022.  This to shall end, better times will come back.  Below is the chart:

 

 

Many cities all over the US are experiencing this phenomenon.  City employment rates down, case shiller housing index going parabolic:

 

 

Overall, it is very hard to know what to expect much less when.  We just know that the best hedge on Earth for the inevitable inflation and perhaps, although we hope not, hyperinflation is Bitcoin.  Own it, hold it, dollar cost average.  Do not trade Bitcoin, do not borrow from Banks, and keep your time preference, short.  In other words, invest very long term, buy dips, and don’t get emotional if stocks crash and they drag Bitcoin down with them temporarily!  Bitcoin will decouple WHEN that happens.  

 

This Bitcoin chart below seems most realistic, although timing is usually wrong on all future predictive charts.  Ask Plan B!:

 

 

We were here when Bitcoin droped to $29K, and we were here when it was $6K in early 2020.  We will be here if it drops to those levels again someday.  Keep stacking Bitcoin.  HODL.

 

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.