The Coming Wave of Inflation
Bitcoin is bouncing above and below $60K through this last weekend. That is extremely bullish, so today, we will zoom out on Bitcoin’s price history. Bitcoin does crash and move sideways like it has since mid March. The key is to always zoom out and look at how Bitcoin has performed consistently in it’s 4 year cycles:
Nothing has ever performed this good for this long. At Neutral ATM we believe the reason for this is that Bitcoin can make up lost ground so fast that it does not pay to get out of it, especially if the entry price is low. Right now, we have 5 to 8 months until this cycle ends, that is enough time to make great returns in Bitcoin. Then, dollar cost average in late next year when Bitcoin comes close to the 200 day moving average. The above chart makes it obvious Bitcoin can recover losses faster than any asset in the world. It is a long term play.
The next chart compares this bull run to previous cycles. The green line is 2012-2013 bull run. The red line is 2016-2017 bull run. So far, the 2020-2021 blue line is in the middle and, based on current Bitcoin charts, it is about to explode upwards. From the main consolidation at the mid point of the bull run in 2016-2017, Bitcoin rose up 10X. Then it hit the bear market sell off, and recovered in 2018 and 2019. If Bitcoin remains where it is tracking now it is possible that it could rise up in between the last bull run and the first one in 2012-2013. That was a 40X rise from this mid run consolidation point we are in. We have consistently predicted $160K to $220K as the top of the bull run. It appears conservative. We are not planning to sell the top, because we bought so cheap it is not worth it to pay more later on. We plan to just reinvest into land, but just a small % of the profit from this bull run. Then we will accumulate Bitcoin in 2022-2023 for the 2024-2025 bull run. That is our strategy. It is sound. Here is the chart below:
For the rest of this blog we will discuss what is going on with the US dollar. The chart below is home retention actions. Loan forbearance plans ending in loan modifications is up exponentially in 2020 and into 2021. That should continue. We see higher signs of inflation hitting the market this year. We also see a much higher chance of a stock market crash this year, compared to 2020. The VIX index which measures volatility is way up. Here is the home retention action chart:
The above chart is very ominous. Time will tell how all of this plays out. The next chart is also very ominous. It shows US M1 money supply going from $6.7 trillion to $18.4 trillion between January 2021 and February 2021! That is a triple of total money supply in one month! That is unheard of. Zimbabwe, and Venezuela economies had money supply growth like this. It is not sustainable. Unless drastic action is taken, it appears the US economy will suffer very negative consequences relating to the actual buying power of our currency. China is already trying to exacerbate the situation. See the chart below:
The FAO food index is an eye opener as well:
Personally, I planted a garden, well actually, I helped my wife plant the garden. Learning about gardening by the square foot has been very good for us. There is a lot to prepare for, for late 2021 and into 2022. We hope for the best, but prepare for the worst. Bitcoin is a hedge that has proven over 12.3 years that it has the staying power and the volatility to survive bear markets. That is why it has staying power. It has not died despite being declared dead many times. Our blogs have discussed many times, the 4 year cycles, and how after the halving Bitcoin sees massive price appretiation. We now have an OTC Desk and we are working on accepting credit cards to buy Bitcoin online. Helping anyone and everyone adopt Bitcoin as their hedge against the coming wave of inflation is our mission.
Neutral ATM buys and sells Bitcoin as little as $20 at a time! You do NOT have to buy an entire Bitcoin. 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.