Brian Brooks formerly Comptroller of the Currency, just met with congress and testified in this link below about the importance of Bitcoin both for the environment and the economy, click here to view on Twitter.
Consumer confidence has begun to drop in China, rather dramatically as $148 Billion was just approved by their government to bail out failing real estate companies. As the Chinese real estate bankruptcy unravels. It will do one of two things globally. Either 1) spark more inflation if China completes the real estate bail out up to $1 trillion. Or 2) China lets the industry their economy relies on, unravel, which will create a real estate contagion globally. We expect the former result. At any rate, regardless of what the government does with real estate companies. Below is consumer sentiment in China:
Then, after the 75 bps rate hike by the US Fed on Wednesday. The below chart shows 10 year bond yields collapsing immediately after a rate hike! This appears to tell us the rate hikes are NOT helping, and this contagion in equity markets will spread much further:
Meanwhile, Bitcoin has spent the last 7 weeks plus creating a nice base, from which to bounce from. When the time is right, of course:
The announcement from Fed chairman Jerome Powell was a dovish speech. Now we see the DXY (US dollar index chart) dropping somewhat. It appears range bound, much as Bitcoin is. Remember, the DXY and Bitcoin are 100% inversely related. Same as Gold, Copper, Silver, and Bitcoin. All inverse to the DXY. As the Fed continues to get more dovish, especially into 2023. We expect the DXY to fall off, and Bitcoin to finally bounce. It could happen in the 4th quarter, but we are not expecting much this year. The lows are in, the base is building. We have to be very patient! Here is the DXY chart below:
We do believe this is a controlled demolition, but there are limits to how far the Fed can take this. They have to limit demand to get inflation under control. We would not suggest trusting Bloomberg or MSM Financial commentators. They are already telling us this is NOT a recession! At any rate, whatever you want to call this, it is NOT good. Yet, Bitcoin is stronger than ever from a has rate perspective (rate of Bitcoin mining on the blockchain). Bitcoin’s support has never been better. Prices are low enough and will be for most of this year to get a great return over the next three years. Far outpacing inflation as Bitcoin has done since 2009. We are not financial advisors, and this is not financial advise. Bitcoin is the undisputed king of inflation hedges for almost 13 years now. As inflation keeps raging on. Remember, we announced last week that the Fed is supporting the US Treasury to buy back bonds that have collapsed in value. If the Fed has to support the Treasury. What does that do, long term, to the buying power of your US dollars?? Without long term buying power, what value is the US dollar to you?? Join the alternative monetary system, based on hard money, in a free market, trustless system. The Blockchain, and Bitcoin. NOT alt coins, only Bitcoin! Nothing else has the decentralization and scarcity!
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