Bitcoin is now without a doubt the place to go if you want a safe haven. If the gold had gone through the roof, everyone would have pointed to Afghanistan as the reason. Gold did not explode and here is the graph:
Remember, Afghanistan was the reason gold hit $ 2,000 in 1980:
So, for me, Bitcoin’s sudden reversal from its crash was motivated by this and something much bigger and potentially worse:
Bitcoin bulls are just going to attribute this reversal to institutional adoption, but for me bitcoin was two-thirds of its way when it crashed when something reversed it. This is watching and any bear will look at the graph above and see a heavy fall ahead.
Me too, corn the current social “repression” in China should not be underestimated.
It is no coincidence that bitcoin was indeed banned in China as the government clamps down on a wide range of industries, businesses, behaviors, and people. China is in fact attacking anything that can, could or will undermine or in any way, passive or active, undermine its domination.
Whether it’s gender-bending boy groups, children’s games, taxi services, billionaires, IPOs, or cryptocurrency, there will be many who will be looking to speed up the expatriation of their resources. move towards bitcoin, etc. like a refuge.
If this crackdown intensifies, bitcoin will remain in the air, as will other cryptos. If the flow of Chinese crackdowns stops, the crypto will continue on its bearish market path.
Bitcoin is such a strong indicator of big trouble in huge China and nothing good can come from bad news from there. What has already happened is in itself a dangerous set of developments, because the problem with a highly centralized government is that while they seem powerful and decisive, they are fragile below the surface. Often times this fragility, when tested, results in sudden disruption, and in the case of China, it would set the entire global economy back down.
So if we see more repression coming out of Beijing, more bitcoin rally, and a set of unexpected moves in other assets, it will be time to take a lot of risk. Don’t take any risk except it’s with crypto.