Cryptocurrencies

BTC / USD Advances Slowly But Surely To Its High Since 2017 – Cryptocurrencies

BTC / USD is on the verge of hitting a new high since 2017. Bitcoin (BTC) has been chipping away at almost 4 years in the face of countless criticisms which are now quite pale when we see the thousands of billion from central banks and the brewing inflationary wave.

Pub


A Bitcoin to pay for your coffee

The problem has never been to pay your coffee in BTC

The problem was end the monopoly on money creation held by central banks ! The Bitcoin is a dagger stuck in the flanks of the Bank for International Settlements (BRI), the central bank of central banks. He’s kind of guardrail.

Central banks have never printed so much money. We are at $ 7,500 billion this year. The Fed is likely to print more than in the first three rounds of QE combined. 1400 billion in 2008, 560 billion in 2010 and 1700 billion 2012. Governor Evans said yesterday that the FED could “increase its current rate (120 billion per month) of debt redemptions if necessary“.

And since we religiously believe in the inflation figures that the statistical institutes tell us, we do not understand why life seems more and more expensive. Life IS more expensive. The purchasing power of savings is melting like snow in the sun. The inflation figures are wrong!

And this headlong rush will continue. Central Banks do not have any no other choice but to inject more and more money. They even tell us straight in the eyes that they want to give up their role, which has always been to maintain price stability. Central Banks now decide their mandate themselves ! Welcome to 2020 …

BTC fundamentals are doing very well

The fundamentals of Bitcoin are things like hash rate, the number of daily transactions, the number of addresses, in short, anything that shows that the Bitcoin network is growing. The correlation between these parameters and the price of Bitcoin is weak, but it could soon grow with the arrival of institutional investors. In any case, that’s what the giant investment fund Fidelity thinks.

All is well with the hash rate, whose weekly average has just reached a new record of over 146 TH / s. The recent rise in Bitcoin has increased the incomes of miners, prompting them to join the network. Halving is not a problem when you consider the upside potential of BTC …

Pub

Note also that the number of wallets with more than 100 BTC is at its highest for 6 months. 16,159 Bitcoin wallets are affected. Glassnode also reports that the number of non-empty Bitcoin addresses hit an all-time high of 31,913,355 on Monday. We also observed a peak of over 22,000 new addresses per day at the beginning of October. Knowing that the average rate is rather between 5,000 and 10,000 new addresses per day and that such a level has not been seen for two years.

New BTC addresses
Number of new BTC wallets

Another reason for satisfaction: the dominance of Bitcoin over other altcoins is on the rise. By the way, monetary dominance is always a fight to the death… It is written that 99% of altcoins will end up being worth 0. Which is already largely the case…

Dollar Index

As always, we cannot ignore the dollar whose inverse correlation with Bitcoin has been shown to be weak in the short term. We see that the greenback remains heavy.

Dollar Index DXY
Dollar Index

We should quickly see a new low once US Congress agrees on a new budget deficit of 2 trillion. And yes, budget deficit rhymes with a fall in the exchange rate

Gold, which increasingly tends to move in tandem with Bitcoin, remains strong and looks to move above $ 1900. Speaking of which, let’s also talk about the US elections. let’s remember that Donald Trump has appointed a fervent Gold Standard lawyer to the Fed. A Trump victory could therefore benefit gold and indirectly Bitcoin.

That being said, we read a lot that the dollar will appreciate if Trump wins. The reason being that the dollar has been falling steadily since Biden took the lead in the polls. Which is rather light as a reasoning …

Pub

Trump being the historic champion of the budget deficit (3000 billion just for this year …), it is difficult to see why the dollar should welcome its possible victory. A rise in the dollar, if it occurs, in anticipation of a reduction in the trade deficit with China, will likely be temporary. And anyway, 4 years after the election of Trump, the trade deficit has not really reduced …

USA China trade balance

We remain bullish on BTC / USD and today’s breakout of $ 12,000 bodes well for the future. Still $ 14,000 in the sights.

  • BTC / USD weekly chart (one candle = one week):
BTC / USD pair
Tags

Related Articles

Back to top button
Close
Close