Float Over the Top, with Bitcoin
Bitcoin will eventually stop the sideways consolidation it has been stuck in since early 2021. There has been massive manipulation since the Bitcoin ETF approval by the SEC only came back for Future’s ETF’s and no Spot ETF’s. That was spring 2021. Yet, since the Ukraine Russia crisis kicked off a week ago, Bitcoin has pumped quite a bit, and the inflation narrative is getting stronger, since the rate hike narrative has weakened. Investors will have to wait this choppy price action out. We have to remain patient. We must look at the big picture. See this zoomed out chart dating back to 2017 for a big picture view:
It is important to remember the true value of Bitcoin as we remain patient, waiting out this consolidation in the above chart. Bitcoin has been the best hedge from inflation, civil unrest, black swan events, and it is unseizable. In a few months we could add War to that list. It has only been a week since this crisis kicked off and we don’t know where it will lead. Bitcoin protects a family and their wealth like the Ark during flood. See below:
To top it off today, Jerome Powell, US Fed Chairman said there can be more than one reserve currency. The USD is weakening now that Russia has been kicked out of the SWIFT banking system. All Russian citizens are scrambling for access to their money and Bitcoin adoption in Russia and Ukraine is spiking now. Wallets holding Bitcoin have surged to over 40 million wallets this week. Many of these newest wallets are in those two countries, so the citizens can transact and store their wealth outside of the ruble, which has crashed since the financial sanctions against Russia. Click here to see the zero hedge on tweet.
Does this mean Bitcoin will be the second reserve currency? Where else can Russia go other than Bitcoin? The ruble is now worthless because of the US and European sanctions, removing Russia from the SWIFT banking system. We will see how this plays out. Bitcoin is gaining momentum on the world stage!
Below is a chart that shows Fed expectations from years ago, regarding CPI inflation projections. As we all know, CPI is now 7.5% and will be above 8% very soon:
Yet, expectations last year, and previous, were for up to 3.24% CPI inflation. So inflation is over double what the Fed predicted. Now that the military crisis in Ukraine has begun, inflation will ramp up faster, and the Fed cannot raise rates much if at all, at the March 15 FOMC meeting.
That leaves us, the citizens, stuck! Real inflation is 15% and on the East and West coasts, over 20%. See the chart below showing the difference between CPI inflation and real inflation from shadow statistics:
As yesterday’s blog stated, real inflation ramping up this fast, will pump up asset inflation and economic inflation. Both are bad for the citizens and especially the middle and lower class. When inflation gets to these levels, purchasing power is being lost very quickly. Gasoline prices have doubled, at least, in the last year. As the hash rate from Bitcoin mining increases, and the Bitcoin wallets above 0 Bitcoin do as well. The health of Bitcoin follows. The price will follow, supply just has to dry up enough that demand outpaces it. A black swan like Ukraine Russia crisis, will cause this in time. We expect to be at new ATH levels in April or May. Time will tell. After corona virus first hit, Bitcoin performed a 10X return in a year. We are not happy about any of these black swan events. They happen for reasons that are outside the realm of investing and financial. However, in these uncertain times, we all need an Ark. You could say a life raft as well. Below is the chart for Bitcoin wallet addresses, it has surpassed ATH levels:
Bitcoin (despite Canada trying to) cannot be seized, frozen, in offline wallets. Again, do NOT leave your Bitcoin in an online exchange for any length of time! Europe and some US Senators would like to find the Bitcoin addresses donating to the trucker rally’s in Canada, Australia, and the US. This will get worse as more control from any central authority is sought. Bitcoin hurts central bank control over it’s citizens and their money. It is bad for central banks, and very good for citizens. This is why security and holding it offline while possessing the keys has become so important. We are not financial advisors and this is not financial advise. We all need to protect our families and our money saved. Global fiat currencies are being devalued everywhere. The Ruble is worth less than a US penny at this point, and dropping. Currency has now crossed the threshold into a weapon used by central banks against citizens and countries! Even Nazi Germany did not get kicked out of the SWIFT banking system! Obviously, we do not agree with this decision nor the presidence it sets permanently. Yet, here we are. So, get in the Ark, and float over the top of this madness with Bitcoin!
Neutral ATM is here to get everyone off of zero Bitcoin.