Bitcoin in a recession driven by a global market crisis—stock prices plummet, with downward arrows indicating a fall in prices. Money vanishes … [+]
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It’s hard to find a more negative chart for BTC than this one:
The bitcoin chart – it doesn’t get much more negative than this
Credit: ADVFN
In my view, the future is likely to unfold as follows:
The bitcoin chart with my forecast of potential outcomes
Credit: ADVFN
Only a remarkable occurrence could change this trend. A target of $60,000 is feasible, while $40,000 remains a possibility.
Currently, we see the U.S. Crypto Reserve emerging. The SEC and other regulatory bodies are starting to ease their grip on the cryptocurrency sector. Amid trade wars, global disturbances, and various unpredictable factors that are expected to drive bitcoin prices upward – the chart still resembles a classic indication of an impending bust.
Trade based on what you observe, not on assumptions.
Gold signifies conflict, whereas bitcoin represents escape. You can observe Ukrainian stakeholders buying and selling their capital for flight as the news cycles fluctuate.
So, what’s the broader perspective?
The U.S. economy is poised for a downturn due to tariffs – unless this is all part of a master strategy!
Tariffs act as a sales tax impacting Americans—essentially a significant, uniform tax on all consumers. The tariffs are not borne by foreign suppliers but by the importers. This represents a trillion-dollar tax hike. If new money isn’t injected into the economy, a depression could follow, leading to stagflation or stag-deflation along with a GDP decline. Subsequently, the U.S. government might cut spending by 15%. This could trigger a deeper economic collapse as cash flow diminishes, resulting in mass unemployment for government workers and frightened consumers halting spending, which would lead to an economic implosion.
What does this imply for crypto? Cryptocurrency requires fiat inflows to appreciate in value. When monetary conditions tighten drastically, inflows are likely to dwindle.
Is there anyone who believes the stock market will continue to rise like a ‘homesick angel’? Can anyone envision the Nasdaq reaching 15,000?
Even if the current administration navigates the situation deftly, the disruptions already in motion are likely to take the fizz out of risk assets – because only stability allows risk assets to thrive, while true risks can eliminate them completely.
Brace for impact.
