The chart speaks for itself - US dollar strength is inversely correlated to BTC price.
While this might not be news to most of us, I find the DXY chart particularly interesting, as it's approaching a critical level. We know the FED will continue at least $120B QE per month until “substantial further progress has been made". More helicopter money stimulus is being debated too - the latest episode in the US political drama. Failure to pass a beefy enough bill before the end of December might collapse the entire financial house of cards, at least that's the common perception. So the printer will keep going, at least for the foreseeable future.
This makes scenario 1 more probable in my mind, sending all inflation hedges to the moon. Recently gold finished a successful retest of previous ATH, so technicals appear to line up very well for this scenario to unfold. If compared to the previous BTC cycle we expect a similar post-ATH euphoria now, BTC price action is also lining up perfectly for the community to profit from the inflation flood.
Could it really be that simple? Everything lining up so obviously in front of our eyes?
The magic of printing money out of thin air, thereby devaluing one's own currency, would naturally force investors to hedge in order to preserve wealth. Whether they intentionally trade the inflation game or not, crypto bros and gals have been and continue to profit in a major way from this practice. Which begs the question - might Satoshi Nakamoto actually be Ben Bernanke? :D
I digress...
What about scenario 2? However unprobable, it wouldn't be optimal for the inflation bet.
Is there anything left that could trigger a global bank run/cash grab, the likes of which even the mighty Federal Reserve would not be able to tame?
While this might not be news to most of us, I find the DXY chart particularly interesting, as it's approaching a critical level. We know the FED will continue at least $120B QE per month until “substantial further progress has been made". More helicopter money stimulus is being debated too - the latest episode in the US political drama. Failure to pass a beefy enough bill before the end of December might collapse the entire financial house of cards, at least that's the common perception. So the printer will keep going, at least for the foreseeable future.
This makes scenario 1 more probable in my mind, sending all inflation hedges to the moon. Recently gold finished a successful retest of previous ATH, so technicals appear to line up very well for this scenario to unfold. If compared to the previous BTC cycle we expect a similar post-ATH euphoria now, BTC price action is also lining up perfectly for the community to profit from the inflation flood.
Could it really be that simple? Everything lining up so obviously in front of our eyes?
The magic of printing money out of thin air, thereby devaluing one's own currency, would naturally force investors to hedge in order to preserve wealth. Whether they intentionally trade the inflation game or not, crypto bros and gals have been and continue to profit in a major way from this practice. Which begs the question - might Satoshi Nakamoto actually be Ben Bernanke? :D
I digress...
What about scenario 2? However unprobable, it wouldn't be optimal for the inflation bet.
Is there anything left that could trigger a global bank run/cash grab, the likes of which even the mighty Federal Reserve would not be able to tame?