Bitcoin is recovering from a month of consolidation since falling from 12,450 on September 1st. Today the monthly close will get closer to or over $11,000 hopefully. Here is a good chart to see it from:
The longer the tail under the candle body for September the more it will act as a momentum bouy for October. The Hashrate is at all time highs right now. We are at consecutive day 66 over $10K. Greyscale bought 9,202 Bitcoin last week which is over the weekly supply. 900 Bitcoin per day times 7 days is only 6,300 Bitcoin per week. Demand requires they do this. Bitcoin has never been this healthy. Unless all you analyze is the spot price. I hope to help my followers to look deeper than that.
The US economy has never had a debt to GDP ratio like it has has now. Here is a chart through QTR 1 2020:
QTR 3 2020 close which happens tonight will likely be close to or above 120%. This is one of the more alarming economic numbers out of the Covid 19 recession since March. Also this chart:
M1 Velocity of Money is down to a ratio of 3.88. Before the 2008 recession this ratio was 10.599. So Velocity of Money has dropped by 2/3 or 66.67% in 12.5 years. This lack of demand signals a deleveraging event going on since 2008. So far it has shown up only in the federal deficit and ratios off of that. Interest rates are back to zero like they were in 2009 through 2011. When will interest rates increase and velocity of money increase? When this deleveraging event clears out the high debt levels the US has been held under for 12 years. The Fed appears to be willing to inflate money supply by reducing the value of the dollar. We are skeptical they can be successful in that attempt. We will have future videos and blogs about why we don’t think the Fed can get inflation consistently above 2% to 3% which is their stated goal. Quantitative Easing is deflationary. Tune in to find out why as we explore that later on.
The point of this education is to impart to young professionals that this economy will be stagnant for a while until the US debt gets deleveraged. Until then investing and growing wealth MUST change or you will fall behind! Bitcoin, Gold, Silver, Real Estate, Fine Art are all quality uncorrelated investments set to shine in this new environment.
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