Although the writing on the wall was clear since January when I titled the Market Notes “Revenge of the Rat” (referring to the assault I saw unleashed on the world at Chinese New Year) watching the reality of the catastrophe unfold in the United States - and especially, New York where I live - in March has been surreal.
While the price of Bitcoin $BTC declined by 25% in the month of March, overall cryptocurrency market capitalization hit approximately $180 billion, a decline of 44% from $248 billion at the end of February.
The majority of market participants within crypto and traditional markets seem eager to call a bottom across the board after the U.S. Federal Reserve’s bazooka and promise of “infinite” cash to buy the world.
I do not agree.
We know what the value is of a unit of something with infinite supply: ZERO. This is now explicitly the value of the United States Dollar. The more trillions created in the coming months simply means that there is more nominal value to flood into tangible assets of fixed and limited supply when denial and cognitive dissonance about the implosion and complete destruction of the status quo begins to fade.
The assets that will take center stage in the months to come will be crypto assets – the building blocks and internet infrastructure of the dawning digital age of a cashless, socially distant new society. The incoming reckoning will be severe, and I do not expect cryptocurrency prices to be spared even while the future VALUE proposition of crypto assets gets clearer and stronger every day.
DOW $5,000 and Bitcoin $1,700 are my targets, coming this fall or by March 2021. The rise of select cryptocurrencies from such a capitulation will shock and amaze, but first we must get to a point where even the most faithful HODLERS lose faith and declare that Bitcoin is dead – for real this time!
Shortly after, $20,000 Bitcoin will be reclaimed and then $100,000 by Q2 2021. This target for Bitcoin anticipates a reset in the price structure for all cryptocurrencies and a revision of many current price assumptions, largely due to a redistribution of power among (and away from) many current leading crypto economy players tied to wreckage from their exposure to traditional markets.
There will be significant incoming counterparty credit and performance failures. The best way to position now for the global reset is to sell the USD into decentralized digital assets, physical quantities of gold and silver (if you can get any), tangible supplies to support life and business operations should supply chains, deliveries and even so-called “essential” businesses completely shut/cease. Limit exposure to cash, assume legacy payment and settlement systems will fail – including cash in banks to be “BAILED IN” – then wait to see who survived the wreckage and buy all the blood you can find.
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All #fhomoney content here and elsewhere is for educational and entertainment purposes only. I do not guarantee the accuracy of any information posted, linked to or shared. Pretty please (with sugar on top), D.Y.O.R. - DO YOUR OWN RESEARCH. As a nascent technology and emerging asset class, all things “crypto” are extremely RISKY and VOLATILE. I do not accept sponsors, advertising or compensation of any kind for what I share or discuss.
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