Bitcoin is up by 4% on significant unfiltered trading volumes of $27 billion with $10 billion added to its market cap to now reach $214 billion.
The digital currency has jumped in the past two weeks by about 20% from $9,000 and has 3x-ed from the March low of $4,000.
However it looks like that external event only temporarily disrupted bitcoin’s trajectory with the big question of course being why is this rising and is it rising for real.
Biden now knows about bitcoin and we know he knows because he tweeted about it and he tweeted about it because twitter was hacked to tweet about bitcoins.
Yes, apparently a 17 year old teen had the might of the most powerful people on his hands and instead of doing something actually stupid, this boy just thought to get some bitcoins.
The great leveling of the digital revolution thus continues with the dollar losing some ground to CNY, falling from 7 to 6.97.
The dollar strength index has dropped this month from 97 to 93 with its economy at great depression levels.
So gold is now nearing $2,000, primarily because no one wants to sit in cash unless they want their money devalued with most assets therefore up.
Hopefully not food prices as well however, with signs they may be falling a tiny little bit perhaps because oil is still crashy at about half the January 2020 price.
Undervalued maybe, depending on what happens in oil rich Libya where there’s a tense standoff with the Turkish Defence Minister Hulusi Akar saying: “It is necessary to ask Abu Dhabi, where this hostility, where these intentions, where this jealousy comes from.”
While for its part UAE’s response was: “Relations are not managed by threats and there is no place for colonialist delusions in this day and age.”
Turkey has a population of 80 million people and a modern army, with the Economist wondering whether they have stretched a bit too much.
Iran has been more busy regarding a $400 billion deal with China, while Putin has laid low recently.
America of course has been very busy, but everyone is looking at Turkey now and wondering: what is Turkey?
Their recent military successes speak for themselves, but the Armenians and the Azerbaijanis are kind of the same people.
They feel otherwise, but there’s some dispute over some border which should be settleable with some negotiations table, with the aim perhaps being more to get such table going.
Libya on the other hand is more difficult to analyze because no one seems to have a full interest in it, and yet everyone seems to have some interest in it, with it having the potential to become a more regional matter as Egypt’s involvement may well draw Algeria on the other side with it all then becoming an actual mess instead of just a paper mess as it is currently.
So Europe in particular has an interest to resolve the matter, but how, is a big question because you can’t have two governments in one country.
All of these uncertainties probably contribute to some of bitcoin’s price actions, maybe as a hedge, with Lebanon for example being just the latest illustration of what can happen in many developed countries, and thus why especially for the wealthy, some crypto can be useful.
In addition there’s some uncertainty that Chinese people might be feeling in regards to SWIFT, and thus some of them may be at least thinking of getting some coins to still engage in international trade regardless of what happens. Not to mention the internal capital controls that are being trialed in some regions there.
Then there’s the crypto specific factors. Defi is building a new financial system and although that benefits ethereum primarily, bitcoin runs on eth in a tokenized form.
Thus people may well be exchanging their fiat for bitcoin, tokenizing it, then sending it off to one of the defi dapps to yield farm and bot trade around with flashloans and much else.
All of these factors so combining to create a ‘disbelief’ stage, with it to be seen whether bitcoin or ethereum will move to optimism.