Economic News

Crypto Update – Government Shutdown = Bitcoin UP

crypto update government shutdown bitcoin up
The reaction to the government shutdown is quite interesting.  Of course most markets were closed at the time, but stocks, bonds, and even gold mostly yawned while they were open knowing that it was likely to occur.
Then when it did occur, BTC rose sharply, climbing more than $1,000 per coin.  Bitcoin Cash, Litecoin, Ripple, Ethereum, none rose the way BTC did.  Also, the Alt coins largely did not follow, and those that did only rose by a much smaller degree.  What does that tell us?
To me it says that Bitcoin is the flight to safety trade – and that means that as an asset, it will benefit in crisis, and as the Dollar takes more and more hits, it will be the preferred place to own “money.”

The truth is that Bitcoin is FAR BETTER in all aspects of “money” than either the Dollar or gold!  How can I say so?  It is strictly limited in supply, making it a far better store of value.  It is far better transactionally than gold, and actually is far better than the Dollar in that regard as well!  It’s easier to store than either, easier to move, it’s simply a better form of money!  This despite criticism of it being slow, but please compare that statement to trying to move gold or dollars around the world and you will see a clear winner.
Now ask yourself which is better for humanity, and where you should put your money should be obvious.
Bitcoin is currently continuing its climb after breaking up and out of a pennant formation last night:
The target on that break is the upper down slopping line that currently resides in the $15,000 neighborhood.  Here’s the big picture chart showing the descending wedge:
I would expect that we will not likely break through that line initially, although if we do it will be extremely bullish. 
My expectation is that once we touch that line again, price will fall.  My hope is that it only falls a short way, regains upward momentum, then breaks it.  But the descending wedge pattern says that we could touch the upper boundary, then descend one more time to touch the lower boundary – so don’t be surprised if that occurs.
I think the lesson of last night is that BTC is the preferred store of money value for the world.  Don’t let short term corrections and negative talk take your eye off the long term play here.  I still believe BTC is going to $40k by the first half of the year, $100k before the year is out.
You should be aggressively long BTC on a break of the upper descending trendline if you’re not already.
Have a great Government shutdown weekend.  No, I don’t feel sorry or sad about it – our very bad behavior, breakdown of a proper rule-of-law, terrible role modeling, and negative karma will eventually bite much harder than this.  The role of the Dollar is appropriately diminishing, humanity is righting the ship by fixing the most important thing – breaking the monopoly on money that gives the bad actors their power and control over the entire globe. 


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