Seperating Bitcoin from it’s price

Many people tell us they don’t trust Bitcoin because of the volatility.  It is down from $69,000 in November!  Yes, but it is up from $0.008 since 2009!  It IS volatile and risk off at the same time!  Here’s why.  

 

We’ll start with a Ron Paul Quote:

 

 

Then look at the rate of Bond purchases per month the Fed is still doing, in the midst of massive rate hikes.  We still believe the July 25th announcement by the Fed will be 75 or 100 bps rate hike!  Yet, Bond purchases are still $13.7 trilliion per month from the Fed!:

 

 

This tells us that the Fed is buying Bonds which is QE, yet at the same time, they are raising rates.  Raising rates kills demand and eventually, crashes equity and real estate markets!  The Fed is doing both simultaneously.  Central Banks are rolling out CBDC (central bank digital currency).  While, at the same time, quantitative easing, and raising rates fast!  The CBDC is China and Europe so far.  We are quite sure more will come out about this starting in the US, at some point in the near future.  These policies are financially destructive and hint to a shift in the monetary system.  To central bank digital currency.  Past blogs have warned of the perils of CBDC.  It is surveillance, and control, with a digital tracking element to it.  The only way to escape from CBDC is a decentralized digital monetary system with a programmatic scarcity feature, Bitcoin.  Here is the 4 day death cross from a chart last week.  Later this week, perhaps on Wednesday this cross will happen:

 

 

In 2015 and 2018 it signaled the bottom of the bear market a few weeks AFTER the bottom hit.  Bitcoin was $17,500 in mid June.  We believe that was the bottom, and the 4 day death cross chart is the confirmation we are looking for.  So, then why would it be a bad thing to invest in Bitcoin at or near this bottom as it surpasses $22K for the first time in many weeks?  This is a smart thing to do.  

 

Remember, Bitcoin is the inverse chart of the DXY.  We were thinking the DXY would hit 120 and it still could, but the charts are showing us a rollover for the DXY (US Dollar Index):

 

 

Also, notice the inversion between the 2 year and 10 year. Bond yields and the DXY in this chart below.  That is normally bearish for the DXY index:

 

 

We need to keep watching the DXY chart.  It could turn back up next week after the FOMC announcement for the next rate hike.  Even if it does, the Bitcoin 4 day death cross happing mid week all but ensures the Bitcoin bottom is in.  This has been historically true since Bitcoin was invented in 2009.  We trust that more than we do, understanding where the DXY chart will be in 90 days.  Remember, 600%+ of the US GDP is made up of asset prices.  That is equities and real estate.  Raising rates crashes those values fast.  Could this all be pointing to more easing and smaller rate hikes into the end of the year.  Or, are the central banks so determined to get us into the green new deal, and the great reset, that they will sacrifice the economy, and asset prices to achieve that goal?  Crashing asset prices using rate hikes would speed up the process.  See this next chart showing the % of GDP asset based net worth is, in the US:

 

 

We cannot and will not try to speak for the Fed.  Next Monday they will speak for themselves.  In the meantime, we have to wait and prepare for the fallout of that announcement.  A controlled demolition appears to be underway.  If the rate hike is actually 100 bps, the Fed has proven their point already.  They will continue this controlled demolition into the election!  Not good for equities, Bitcoin, or real estate.  However, only Bitcoin is decentralized and truly scarce.  Only Bitcoin can come out the other side of this stronger as it has done after every crash since 2009.  There have been many Bitcoin crashes, this one will end up as the others have.  A memory, and an accumulation opportunity before the next bull run.  We are not financial advisors, and this is not financial advise.  Bitcoin dipped, now it is strengthening as we await the Fed’s next move in one week.  Dollar cost average to avoid trying to time the market.  Altcoins always crash big after a run up, gold has not been a good inflation hedge, bonds and equities have multi-year headwinds.  Only Bitcoin can hedge this kind of inflation long term.  Buying when many doubt it, has proven to be a winning move.  Bitcoin will eclipse $100K.  Not this year, but it will happen, and from there, it will keep going.  Keep it stored offline, securely, and there is nothing to worry about.

 

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.