Bitcoin is now undoubtedly the place to go if you want a haven. If the gold had come off the roof, everyone would have pointed to Afghanistan as the cause. Gold hasn’t broken through the ceiling and here’s the chart:
Remember Afghanistan was the reason gold hit $2,000 in 1980:
For me, the sudden reversal of bitcoin from its crash was prompted by this and something much bigger and possibly worse:
Bitcoin bulls will put this reversal in institutional adoption, but for me, bitcoin was two-thirds of its way down when something changed it. This is looking back and any bear will look at the chart above and see a heavy bearish in the future.
I do that too but The current social “oppression” in China should not be underestimated.
It is no coincidence that bitcoin has been virtually banned in China at the same time that the government is cracking down on a wide range of sectors, businesses, behaviors, and people. In fact, China is chasing anything that may challenge, or may challenge or undermine its rule in any way, passive or active.
Whether it’s boy bands, toys, taxi services, billionaires, initial public offerings or cryptocurrencies, there will be plenty of people looking to speed up the process of moving their resources offshore, and whatever open crypto business is now closed, you can Rest assured that many will be. Heading to bitcoin, etc as a haven.
If this campaign escalates, Bitcoin will remain high as well as other cryptocurrencies. If the flow of Chinese crackdown stops, the cryptocurrency will continue its bear market trajectory.
Bitcoin is a strong indicator of a huge problem in huge China and nothing good can come of bad news coming from there. What has actually happened is itself a set of dangerous developments, because the problem with highly centralized government is that while it appears powerful and decisive, beneath the surface it is fragile. This fragility when tested often leads to sudden disruption and, in the case of China, would set the entire global economy back.
So if we see more repression from Beijing, more Bitcoin rally and a host of unexpected moves in other assets, it’s time to get rid of the risks. Risk, except with cryptocurrency.
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