BTC is at a great buy zone if you are bullish. But, the problem is that it is a free fall below that level. 12500 seems like the obvious price target if BTC were to fall. Possible support at 20000.
Real Interest Rates have been the forward looking indicator for all risk-on assets especially BTC. As Real Interest Rates rise, it becomes A LOT less attractive for Investors to store their money in no interest bearing assets. To review: Real Interest Rate is calculated by taking the Nominal US10Y - 10Y Inflation Expectation. Imagine you have $100, but the bank only offers 1% interest. Bitcoin doesn't look like such a bad investment because, you would only be missing out on 1% yield. However, as they offer 3%, 5%, 10%. Investors gravitate toward these guaranteed returns especially as, market sentiment weakens.
Buy BTC, Gold and Stocks when real rates go down.
Real Interest Rates have been the forward looking indicator for all risk-on assets especially BTC. As Real Interest Rates rise, it becomes A LOT less attractive for Investors to store their money in no interest bearing assets. To review: Real Interest Rate is calculated by taking the Nominal US10Y - 10Y Inflation Expectation. Imagine you have $100, but the bank only offers 1% interest. Bitcoin doesn't look like such a bad investment because, you would only be missing out on 1% yield. However, as they offer 3%, 5%, 10%. Investors gravitate toward these guaranteed returns especially as, market sentiment weakens.
Buy BTC, Gold and Stocks when real rates go down.
Comment:
Look at the overlaid chart. Real Interest rates have moved quickly from -1% to +0.5%.
