Bitcoin has overtaken $12,000, with it rising by some $500 in the past two days and nearing a new local high.
Whether that formidable resistance of $12,000 is overtaken, however, remains to be seen as bitcoin is just $200 above it currently.
It can easily fall down again without $12,000 being support, but it could also this time reach for $17,000 in the medium term, with it to be seen in that case whether $14,000 would be much of a resistance.
It’s not too clear whether what we’re seeing is a fairly nice cup and handle on the daily, something that would suggest bears have consumed their ammo with bulls maybe thinking of charging.
Why, is the big question and we’d have to start with the halvening. There’s just less bitcoin coming onto the market, with only 6.25% of the total supply to ever be mined once this halving period ends.
That makes bitcoin and only bitcoin extremely rare. Only bitcoin because it is the most decentralized crypto-currency out of them all, and it is the only one that can credibly guarantee the 21 million limit.
That quality has made it an attractive option for people looking where to park their money especially amidst incredible government debt levels that probably will never be repaid except through devaluation.
The central banks now own much of the economy, while stocks are gamed and very much in a bubble according to everyone. Indicating there might not be too much upside because there’s only a certain number of iPhones one needs.
Google is now under anti-trust proceedings, with the tech monopolies facing a backlash both from the left and the right a decade after the techies themselves began revolting against what once was cool startups.
Houses remain still a fairly safe investment, but that’s now a big political issue with huge pressure for more houses to be built and restrictions to be placed on empty houses investments as the rulers now face the most discontented generation in a century.
While bitcoin on the other hand is coming out of a years long bear market, with the crypto remaining the only real alternative to the banking system if one wants to transact.
Meaning it is perhaps just a matter of time until Hayek has the last word, as Keynes is shown to have failed completely unless his intention was to bring forth Marx’s prediction.
On that end, both neo-liberalism and neo-conservatism have become dirty words as the millennials see what the previous generation did to their countries where they ripped up the manufacturing base to give it to an authoritarian power for free. While for the latter, two decades of war based on sophist Strauss have reduced America to dreaming of being great again.
The pendulum swings however, and that it has swung too far towards communism is evident, with it just a matter of time until it swings again towards competitive free markets, beginning with a free market in money itself.