Although yesterday and today’s pump came back down somewhat, from $40,577 to $37,324. It started under $30K so it was still a break out. There is strong resistance at $41K, and buying volumes have not been high enough yet to break through. However, regardless of Amazon rumors, true, or not true. Bitcoin proved once again, it is resilient, and will not die. Over $1 trillion in Bitcoin shorts were liquidated as of today. The stock market still looks overbought and weak, considering the looming crisis which is the $1 trillion per day reverse repo market. See the chart below, all the blue arrows pointing to reverse repurchase agreements:
As these reverse repo agreements grow per day, commercial banks selling treasury bonds back to the Fed, in exchange for daily liquidity. This cannot continue for a lot more time! Not to mention, the inflation bomb that is the infrastructure deal, still being attempted to cram through congress.
Bitcoin on the other hand, hedges this inflation in goods and services. It also hedges against the impending deflationary stock market crash brought on by these reverse repo agreements. So, we keep mentioning the 2013 Bitcoin bull run. In this chart we can see the first top and we are beginning the run to the second top. $200K?:
The next chart shows how OTC desks (Crypto Exchanges), are seeing volumes stored on their exchanges drop. See the chart below:
This means that net outflows from OTC Desks is going to offline wallets (cold storage). Investors are storing longterm for the bull run. This is what Neutral ATM has been advocating for. There is no better hedge! The next chart shows Bitcoin entities with varying amounts of Bitcoin in their respective wallets. Red line being the smallest wallets, yellow line being the largest wallets. Even the whales with over 1K Bitcoin are HODLing long term! This will impact the supply shock in a positive way!:
Even moreso, miners HODLing and increasing net outflows from OTC exchanges shows an affinity to shock the supply chain of Bitcoin. As the supply, on OTC exchanges drops off, price has to go up. Metcalfe’s Law:
Therefore, as all Bitcoin investors, from Whales on down to young college and high school students buying small amounts of Bitcoin, are HODLing and not selling. Supply will be cut off, over time. Then, the Bitcoin price really will go parabolic! Buy Bitcoin, hedge inflation, hold the line. It’s like 2013!
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.