Bitcoin and Simple Economics
There are plenty of Bitcoin charts which were scaled, dashed with lines in order to justify desired result, a dream of 100K price level. Well, bad news. It won't.
Before starting our review, if you are able to read simple graphics, please meet VIX: Volatility Index. Here you can see the opposite dance circles of VIX and BTC.
As volatility decreases at stock exchanges, seas getting calmer, chances of a high wave (earning) is less, Bitcoin is a great instrument to jump in.
2022 is the "inflation" year. FED is on his toes. The 10-year Treasury yield rose as high as 1.75% on Thursday, as the rate spike in the new year resumed with investors assessing the FED’s faster-than-expected policy tightening. Increasing yields means less demand. Economically translated, investors are not searching for a safe zone or under panic of anything, including Omicron.
So what is the good bet now? Stocks!
Until Dec 2021, a positive relation is visible between US10 yields and bitcoin. At the very end of year we saw a switch (Highlighted area with rectangle)
I expect BTC prices to cross down $30.000 level and VIX tor each 22.00 within 45 days. At that point, if FED makes first move before March, now it was time to jump in to the BTC since both EU and ASIA stocks will sell off as FED calls back green bucks to the motherland and offer safer solutions.
DXY must be followed closely as it shows slower but steady pace towards 100 ground zero limit.
Before starting our review, if you are able to read simple graphics, please meet VIX: Volatility Index. Here you can see the opposite dance circles of VIX and BTC.
As volatility decreases at stock exchanges, seas getting calmer, chances of a high wave (earning) is less, Bitcoin is a great instrument to jump in.
2022 is the "inflation" year. FED is on his toes. The 10-year Treasury yield rose as high as 1.75% on Thursday, as the rate spike in the new year resumed with investors assessing the FED’s faster-than-expected policy tightening. Increasing yields means less demand. Economically translated, investors are not searching for a safe zone or under panic of anything, including Omicron.
So what is the good bet now? Stocks!
Until Dec 2021, a positive relation is visible between US10 yields and bitcoin. At the very end of year we saw a switch (Highlighted area with rectangle)
I expect BTC prices to cross down $30.000 level and VIX tor each 22.00 within 45 days. At that point, if FED makes first move before March, now it was time to jump in to the BTC since both EU and ASIA stocks will sell off as FED calls back green bucks to the motherland and offer safer solutions.
DXY must be followed closely as it shows slower but steady pace towards 100 ground zero limit.
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