At the time of writing, Bitcoin price is at $42,600, which is a disappointment for many. Why? The hype surrounding the introduction of spot Bitcoin ETFs in the USA was enormous and the price reaction has been disappointing so far.
What investors seem to be forgetting, however, is that we have been dealing with an unprecedented series of economic shocks since 2020.
According to the SEC, the launch of Bitcoin ETFs is thanks to Grayscale
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Bitcoin is more resilient than ever
Since 2020, inflation in the US has risen above 9 percent for the first time in 40 years. In addition, we experienced the second and third largest bank failures in American history, and oil prices rose from minus $40 to plus $100 per barrel in just a few months.
4️⃣The Fed is cutting interest rates
The Fed just completed its most aggressive rate hike in history.
Since the Fed stopped raising interest rates in September:
✅$BTC is up 61%,
✅$SOL rose 400%,
✅And the popular cryptocurrency DePIN $HONEY increased by 1,600%🚀Investors now expect the Fed… pic.twitter.com/yZGf4cO8xv
— Chris Reilly (@C_Reilly5) January 5, 2024
Then it started in March 2022:
- the most aggressive interest rate campaign in Federal Reserve history;
- As a result, we had the most expensive real estate market in history;
- the Federal Reserve took on $8 trillion in debt;
- Demand for mortgages fell to lowest level since 1995;
- and push U.S. credit card debt to $1 trillion.
Despite all this misery, the Bitcoin price is doing very well and the stock markets are close to their level All-time high.
In this respect, we can say that Bitcoin is more resilient than ever and we are dealing with a very special market.
Why is Bitcoin price not falling?
The big question is why the Bitcoin price and stock prices are not falling even though they have every reason to.
The answer to this question may lie with the US dollar.
Because what is the alternative?
You can invest your assets in US government bonds and earn a return of ~5 percent per year. However, there is a risk that you will continue to lose capital due to inflation.
Finally, America's national debt continues to rise, making it very dangerous to hold dollars for a long period of time. Could this mean the great escape into scarcity that Bitcoiners have been talking about for years?
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