Bitcoin finds the bottom much to the dismay of the Federal Reserve (‘the Fed’). That is to say the Fed is in no mood to see Bitcoin prices moving higher because it’s a red flag that their policies are not working.
Regardless, after a three month long correction Bitcoin prices are heading higher once again. Much higher.
However, this week the Fed minutes revealed talk of potentially tapering their bond purchases from $120 billion per month. In this situation the Fed is creating $1,440 trillion in debt every year to support the economy. But in reality, all they are doing is propping up a big pile of bad debt.
Ironically, during the financial crisis of 2008 the Fed rolled out its first ever bond purchasing program, commonly known as quantitative easing (‘QE’). Again, it was touted as a way to help the economy recover from the financial crisis. As a result, the Fed destroyed the ‘risk free’ status of US treasuries, at least in the mind of savvy investors.
Following the 2008 financial crisis investors realized a new form of money was needed. Otherwise the Fed had complete control of, well everything. In their opinion, money and its creation had to be under control of a private bank like the Fed.
Not surprisingly, for this reason Bitcoin was created.
To be sure, the chart above clearly illustrates the magnitude of Bitcoin’s move higher since mid-August. All key moving averages are moving higher, a bullish sign. Surely pull backs will happen so be ready.
Conclusion
I started off this post by saying – Bitcoin finds the bottom much to the dismay of the Federal Reserve. Indeed, the Federal Reserve is frantically trying to build its own cryptocurrency, along with all global Central Banks. Once again our monetary masters are behind the curve and will continue to massively inflate the money supply.
In the end, Bitcoin’s correction was needed in order to set the stage for another run higher. Savvy investor’s should use any short-term pull back as a buying opportunity.
Are you thinking of buying an ETF like the SPY, if so, you should check out this post.
DISCLAIMER: Content provided in this article is for informational and entertainment purposes only. This article is not legal and/or investment advice. This article should not replace professional investment advice based upon your particular situation. Duties are not assumed, intended or created by this communication.
© 2021 mikehoganonline.com, All Rights Reserved
