Bitcoin already has everything it needs for a massive rally irregardless of more stimulus
Stimulus stimulus stimulus!
That has been all anyone has been able to talk about today on just about any finance news channel or finance related website.
The latest news being that we are going to be getting any for a while.
President Trump acted very much like President Trump and took his ball and went home when he didn't get his way.
I wish I could say I was exaterating but that has been the behavior we have seen out of him ever since he stepped foot in the oval office.
Anyways, today he says no stimulus until after the election.
Predictably, markets sold off.
Bitcoin dumped a couple hundred dollars and stocks dropped about 600 points from where they were at the time of the announcement.
I suspect we will see further carnage in the days ahead as well.
That being said, bitcoin doesn't technically need stimulus to go higher...
Bitcoin already has everything it needs
It may sound strange saying this considering bitcoin has been flat for months month, but it technically has all the dry powder it needs to go higher even without stimulus.
Not sure what I mean?
Well, check this out...
(Source: https://twitter.com/filbfilb/status/1313262658825715713/photo/1)
This is chart of the bitcoin price overlayed with the tether supply.
As you can see there is now over $15 billion sitting in tether.
While that number may sound impressive by itself, there's more to this chart that just the tether totals...
Check out the correlation between the tether increase and the price of bitcoin increase back in 2018-2019.
It was a very strong positive correlation.
When more tethers were created the price of bitcoin went up.
However, recently we have been going sideways for months now while the supply of tether has been increasing dramatically.
What does this mean?
It means there is a ton of money already in crypto that may find its way into bitcoin given the right catalyst.
There aren't a ton of reasons to move into tether aside from planning to put it back into crypto at some point.
I suspect at some point in the not too distant future we are going to see a big chunk of that makes its way into bitcoin and crypto and the resulting price action will be parabolic.
We just need the right catalyst...
Stay informed my friends.
-Doc
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lol
Trump took his ball and went away.
I agree, there is already enough money in crypto to keep things interesting.
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He has a tendency to do things like that. It's his way or no way at all. Though today he made a good move suggesting that we just do a much smaller targeted stimulus where they just send checks out to the American people. That would be ideal.
It most definitely puts Pelosi/democrats in a bind.
Do I agree to send The People money and put everything else I am fighting for on the backburner?
Or
Do I stick to my guns and have The People angry at me because I won't agree to send relief?
Anyone knows where to find the right catalyst ? 😄
I feel b4 to long we will all see how right your expectations were, @jrcornel
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I wish I knew! It does sound like we will get stimulus at some point whether it is before the election or after the election, and perhaps that will be the catalyst bitcoin needs to start moving higher and pulling funds out of tether. Or perhaps there is something unforeseen that will pull that money into bitcoin and altcoins. All I know is positive price action tends to beget more positive price action, so we just need to get the ball rolling and then money will jump in!