Is the Fed drowning, and grasping for Bitcoin?

There are many factors at play which are bubbling up at the same time.  This financial situation is tense.  This first issue which has been getting worse since the 80’s is the demographic aging of the American working population.  See this chart below:

 

 

This puts pressure on the pension system and social security.  Yield curves become very important in an aging population. 
 
Below is a national debt clock showing past, current, and future debt based on averages:

 

 

Today national debt is $30 trillion +.  A $1.5 trillion spending bill is being voted on soon.  After sanctioning Russian Oil from being purchased in the US, and kicking Russia out of the SWIFT banking system.  The US is basically trusting that China, who owns $1 trillion of US Treasuries will not sell them after the US froze $420 billion of Russian assets held in US Treasuries.  Again, we are expecting a China invasion of Taiwan soon.  Could China be waiting to sell off it’s US Treasuries until then?  See this video about the position the US is in financially right now, click here to view on YouTube.

 

This situation means China is in the drivers seat and the US will likely have to change over to an entire new monetary system in the near future.  Russians are paying $20K over spot price to buy and hold Bitcoin.  Ukrainians are flocking to Bitcoin as well.  Whether it be CBDC or Bitcoin, something will have to be used to bring liquidity back into the US Treasury.  It appears very likely, China will eventually participate in the financial warfare the US has begun.

 

Enter Bitcoin, see the executive order being officially released today regarding Bitcoin and Crypto Currencies, click here to read more.

 

This may well lead to a CBDC (central bank digital currency), however, it could also create newfound Bitcoin adoption, and at some point, Bitcoin as legal tender among much larger countries than just El Salvador.  Remember, El Salvador is getting 28.5% Yield on it’s Government Bond.  The US currently gets -5.8% real yield on it’s Government Bond.  It is yet to be determined if El Salvador’s Bitcoin Mining Bond will payoff.  Here is more information, the yield however, is great, click here to read more.

 

So, that leaves Bitcoin in a position that demand in Russia and Ukraine is very high.  Other parts of the world, mainly Europe and the US, Canada, are taking a wait and see approach.  Demand has not been high enough yet to create a Bitcoin short squeeze.  Global macro events could change that very quickly.  We do not root for War or conflict.  But, this situation in Ukraine has devolved very quickly.  This accumulation pattern in Bitcoin since last spring 2021, has brought a pair of tops at $64K and $69K.  Notice the green chart below, a Wykoff distribution pattern, whereby accumulation drags on for a long time. The events have not set up for massive Bitcoin demand yet, but as we already stated.  Those facts change fast.  See this chart below:

 

 

This next chart shows it from a different perspective.  Demand has not been there for any of this to happen.  That is our point.  The set up is there for this accumulation period to end, if demand picks up.  Obviously, currencies are being used as weapons now, and China has not made it’s move yet.  They hold all the cards.  In this next chart another leg up could be much larger than many anticipate, because the gravity of what cards China holds is that important.  We know something else is going to happen, but that is more political, and not financial.  This chart gives perspective on what Bitcoin could do, if global macro creates a solvency issue in the US Treasury.  It is not that far fetched:

 

 

All we really know is, we are in completely uncharted territory as a nation and a central bank.  The threats against the US are unlike anything we have seen.  We believe the financial threats are the most substancial.  Nuclear War does not appear likely, we do not believe something like that.  Financial War is much more probable.  The life raft is waiting.  Bitcoin.  This is not financial advise, and we are not financial advisors.  Bitcoin is still the greatest hedge against all of this.  Don’t wait until it is written in the history books to tell you about it.

 

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.