The Coming Explosion of Bitcoin.

why the heck is Bitcoin rallying in the

midst of a banking crisis and

potentially walking into a recession yes

a Bitcoin is absolutely Going Bonkers

and I have an idea as to why we're going

to talk about it in this video because

it's something that you can pay

attention to this is the chart of

bitcoin's performance you can see that

we bottomed at about fifteen thousand

four sixty one only to Now set at about

28 300 in less than five months four

months and about 28 days ago we hit

bottom and now we're basically well I

should say nearly double where we were

had you perfectly timed the market and

gotten in at the bottom right now you

would be up 83 percent on your Bitcoin

but what we're more interested in is

what's going to happen to bitcoin next

first from a TA point of view it is

fantastic to see that the massive

downtrend we've had

appears to be broken we can go to the

weekly chart to see this downtrend

substantially better uh what we have to

get out of the day chart to see it and

we could see that downtrend right here

it's not a perfect downtrend but the

downtrend has clearly been broken uh we

are on an uptrend from hitting bottom

here and when we look at the fibs the

FIB retracement lines we actually have

an important number that we're sitting

at right now and that's because the FIB

retracement Next Level about a 23 level

is right here we're trading right above

it right now at about 28 200 right now

by being at 28 300 we're actually

sitting on that retracement now this

candle just began so we'll see if it

actually holds up but if this candle can

hold up and we can close above 28.2

maybe it's a sign that that bottom 23

percent for Bitcoin is over

now why is this happening is it

potentially because now there are

discussions underway to basically create

a blockchain land registry in Ukraine

think about that a land registry is a

database that tracks the ownership of uh

and transfer rights of land it's

typically maintained by a government

agency but Ukraine is deemed to be at

least according to the International

Community and surveys not according to

me okay Ukraine is deemed to be the most

quote corrupt country in Europe it may

also be the most destroyed country so

maybe you know one came before the other

but who knows

point is blockchain technology obviously

being a distributed Ledger system that

allows for the secure and transparent uh

or and transparent transactions without

the need for a government or Banks could

potentially actually be maintained in a

decentralized manner without the odds of

Putin just showing up and throwing up

little children's play toys and

pretending like everything's fine I say

that because that's literally what he

just did he just visited the besieged

city of marupal which is essentially in

Ruins and what they did was they set up

some little play structures and then

they paraded him around those play

structures to make it seem like yes

children enjoy living in a ruined City

while he looked at architectural

renderings for the rebuilding of marupal

apparently Putin took a helicopter in

and uh and then drove around in a car

with his Deputy Prime Minister but

anyway some people are saying oh it's

news like this that's is actually

leading to excitement over Bitcoin

I don't think so actually in my opinion

the recovery that we're seeing has

everything to do with simply

an algorithm yeah and it's not a very

difficult algorithm to look at all you

have to do is look at the federal

reserve's balance sheet and when it goes

up Bitcoin tends to go up when it goes

down

Bitcoin tends to go down

I think this is mostly algorithmic take

a look this is the federal reserve's

balance sheet and as soon as we realize

that the fed's balance sheet thanks in

part due to the banking crisis started

ticking up again which basically is what

I call transitory QE

all of a sudden Bitcoin Traders and

Algos are having a field day and

Bitcoins going up now will it last we'll

see because technically it's transitory

QE that's bailing out the banks now I'll

briefly explain that since some people

are going to freak out for me saying you

know maybe I'm gonna get I see all the

comments already the FED can't pay money

this isn't kill me man this is just a

loan

it's very very simple very very simple

the reason I call it transitory QE is

because when the FED bails out Banks and

increases access to liquidity swaps

basically Dallas when you increase

access to Dollars you could only

increase access to Dollars by having

more dollars so here's the cool thing

that j-pow can do j-pow can say hey this

is my balance sheet okay assets and

liabilities all right this is my balance

sheet it's gonna balance yes I know I'm

not putting equity in here don't worry

about that right now assets if jpal says

I have a hundred dollars

in assets and 100 in cash well then

maybe the FED has debt of a hundred

dollars well now if Jay pal gets a call

from you know a bank and they're like yo

we need some dollars uh can we borrow

some j-pal might be like well we don't

have any more dollars to give you but uh

if we just happen to add a zero over

here uh this will show that we you know

we just basically created money out of

thin air to balance the balance sheet

we'll just add a zero to our cash

position over here and we basically just

digitally created money hey now we have

an extra 900 that we could send you hey

but you need to pay that back my goal

isn't to actually permanently expand the

money supply so when you pay that 900

back I could go back to my QT

quantitative tightening but in the

meantime in a transitory way they have

now given the banking system

means balance sheet go up as in total

assets go up the amount of money the fed

his credit goes up when that goes up the

Algos go oh ding ding ding last time

this happened during the stimulus era

the Bitcoin went to the moon and it kind

of makes sense Bitcoin was supposed to

be an inflation hedge that's probably

highly debatable especially since it

mostly trades along with tech and risk

assets but that's okay uh we know it has

properties that make it resistant to

inflation in the long term maybe once it

stabilizes it's less of a trading Tool

uh because of well the fact that it has

a finite Supply but this isn't to talk

about the basics of Bitcoin it's simply

to say why Bitcoin up during Panic well

probably because QE up and when QE up

even if that's transitory uh Bitcoin

tend to go up kind of simple but now

technically it's supposed to be

transitory so technically the fed's

supposed to pay that down again nobody's

sure if that is going to end up

happening and it depends on the depth of

the recession uh and the banking crisis

now what's actually interesting is most

people say because Bank credit standards

will tighten the biggest damage from a

recession will actually end up being in

company earnings but what's fascinating

about that is

there are no earnings for Bitcoin so is

it possible Bitcoin could actually

decouple from the stock market

yes it is possible because if we go into

a QE period while corporations end up

getting reamed in earnings maybe it's

possible that Bitcoin escapes however

there's a counter argument to this it's

the Goldman Sachs earnings or argument

that generally

stocks bottom about six to nine months

before earnings bottom so maybe they

could actually you could see those

massive earnings hits but you don't

actually hit new Bottoms in stocks

because a bottom in earnings usually

occurs six to nine months after a bottom

in uh um in the stock prices so it's

interesting but in case you're wondering

why Bitcoin up my opinion is very clear

it is simply

algorithmic trading that sees QE up push

Bitcoin invest in bit by Bitcoin I think

there are plenty of institutional

programs that make these sorts of Trades

uh on on a regular basis and the cool

thing is you can actually operate them

24 7. you don't just have to wait for

the the closing and opening balance

right or the opening and closing balance

you should say that way anyway if you

want more of my perspectives make sure

to check out the programs on building

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phase has been gloriously waiting for it

to get closer to 164. and it's almost

there we got to talk about it