Bitcoin in recession global market crisis stock red price drop arrow down chart fall, Money losing … [+]
You can’t really get a more bearish chart for BTC than this:
The bitcoin chart – just about as bearish as it could be
In my opinion, the future is very likely to unfold like this:
The bitcoin chart with my prediction of where it could end up
Only an incredible event can turn this around. $60,000 is a destination, and $40,000 is a possibility.
So, we have the U.S. Crypto Reserve becoming a thing. We have the SEC, etc., lifting its boot from crypto’s neck. We have trade wars, global conniptions, and all the other random factors that are supposed to propel bitcoin to the moon – and yet, the chart looks like a classic developing bust.
Trade what you see, not what you think.
Gold is for war, and bitcoin is for flight. You can see Ukrainian interests selling, buying, and selling their flight capital as the news flow surges back and forth.
So, what’s the big picture?
The U.S. economy is about to go into a tailspin because of tariffs – unless this is ‘3D Chess’!
Tariffs are a sales tax on Americans – a big, flat tax on everyone. The foreign suppliers don’t pay the tariff; the importer does. It’s a trillion dollar tax increase. If new money isn’t printed, a depression ensues. This leads to stagflation or stag-deflation – a drop in GDP. Then, the U.S. government cuts 15% from its spending. That triggers an even deeper economic collapse as the money stops circulating, a million government employees join the unemployment lines, and terrified consumers stop spending, causing the economy to fold.
So what does this mean for crypto? Crypto needs fiat inflows to rise in fiat price. When money’s too tight to mention, inflows reverse.
Does anyone think the stock market is going to keep rising like ‘homesick angel’ now? Can anyone not imagine the Nasdaq at 15,000?
Even if the current administration plays the situation like Paganini plucking a Stradivarius, the disruption already underway is going to knock the froth off risk assets – because only stability unleashes risk assets, while real risks kills them dead.
Look out below.
