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):