It's not over: It has only just began - XRP Bullish, DXY Crashes
Fundamentals of a dollar decline are intact, albeit temporary strength has been breathed into the DXY by other collapsing currencies such as the Lira. However, the continued printing of fiat will certainly lead to its diminished value against stores of value such as crypto and gold. On the macro level, crypto continues to act as a dollar fiat hedge. While earlier projections assumed a three legged down trend in the dollar, only the first leg has appeared thus far with a strong bounce. This bounce, however, is certain to fade into oblivion as the tens of trillions of dollars of printing continue to deprecate the dollars purchasing power (US Debt will have tripled by the end of this macro cycle).
Many cryptocurrencies, such as XRP are still young in their growth phase. Bitcoin, for example, had 2 Million users during the 2015 bullrun (now 100mln). XRP on the other hand is currently where bitcoin was in 2015 - at the cusp of adoption (refer the JP Morgan and Morgan Stanley articles claiming XRP will be widely adopted after the lawsuit is over).
This fact combined with the continued runaway fiat cash printing train will propel XRP beyond most people's anticipated price targets. Even without a win in the lawsuit, nothing can deter XRP from gaining strength against fiat. It's a self-fulfilling prophecy. The FED and other world governments continue to print and spend, strengthening crypto, which attracts long term wealth, which further debases fiat as people flee from holding fiat in favor of crypto. This vicious cycle cannot be stopped by any regulation and thus while XRP could be deemed illegal in the USA, it certainly will not stop growing in market capitalization.
The things to look for in the upcoming months are a dollar reversal with a second leg down. The March 2020 Dollar selloff was a precursor of what will come. The recent gains in the dollar are short lived as other currencies collapse. But in the long run, the Dollar Bear has not even begun to hibernate. It's waiting in the woods to mall dollar and fiat bulls.
Note:
This article is being published at what we believe is an inflection reversal point IE, we believe this is the zone that crypto finds its strength and the DXY continues its crash.
Not financial advice. All views are opinions. Analysis is our own.
Many cryptocurrencies, such as XRP are still young in their growth phase. Bitcoin, for example, had 2 Million users during the 2015 bullrun (now 100mln). XRP on the other hand is currently where bitcoin was in 2015 - at the cusp of adoption (refer the JP Morgan and Morgan Stanley articles claiming XRP will be widely adopted after the lawsuit is over).
This fact combined with the continued runaway fiat cash printing train will propel XRP beyond most people's anticipated price targets. Even without a win in the lawsuit, nothing can deter XRP from gaining strength against fiat. It's a self-fulfilling prophecy. The FED and other world governments continue to print and spend, strengthening crypto, which attracts long term wealth, which further debases fiat as people flee from holding fiat in favor of crypto. This vicious cycle cannot be stopped by any regulation and thus while XRP could be deemed illegal in the USA, it certainly will not stop growing in market capitalization.
The things to look for in the upcoming months are a dollar reversal with a second leg down. The March 2020 Dollar selloff was a precursor of what will come. The recent gains in the dollar are short lived as other currencies collapse. But in the long run, the Dollar Bear has not even begun to hibernate. It's waiting in the woods to mall dollar and fiat bulls.
Note:
This article is being published at what we believe is an inflection reversal point IE, we believe this is the zone that crypto finds its strength and the DXY continues its crash.
Not financial advice. All views are opinions. Analysis is our own.