Bitcoin | Page 4 | The Gold Forecast

Bitcoin is poised to benefit from global hyperinflation

Wednesday, July 8, 2020 - 19:59 by Joseph M. Wagner II

Bitcoin’s relatively low volatility may have a lot of traditional bulls turned off but all along we and many other analysts have said that a day would come when Bitcoin has shed its volatility. Just like a fraternity brother graduating from college would enter into the real world as a productive member of the economy, leaving its keg stands and one night stands in exchange for a career and family.

The fact that Bitcoin’s maturity to a stable and truly viable asset is furthering that evolution amidst chaos among all major markets domestic and abroad is truly fascinating. In fact, in the early onset of the pandemic in America that caused a crash in equities, precious metals as well as Bitcoin showed us how BTC was still tied to equities. But the timing of the correction as well as the correlation afterwards showed how Bitcoin had now started to trade in tandem with gold. This is more evidence that it is being perceived as a safe haven.

This is increasingly important due to the massive global relief effort through the action of central banks worldwide and the massive amounts of debt that countries are taking on will inevitably prove to devalue currencies across the globe leading to worldwide inflation. Gold is the king of protecting wealth during inflationary periods, but the up and coming heir to the thrown has to be Bitcoin.

Since we have never experienced a global period of hyperinflation other than after world war two and it is not a far stretch to say that we could easily reach WWII levels of economic and mortal devastation.

This would have a profound impact on the price of Bitcoin as well as traditional safe haven assets that will slowly be outdated. This is not to say Gold will not increase its value by leaps and bounds but simply in this new era the many advantages of Bitcoin vs gold such as, easier and cheaper to store, easier and cheaper to send or receive, easier to spend (especially in coming years, decades) will put it ahead of traditional safe haven assets. Especially in a pandemic were as physical currencies may be hosting covbid-19.

So although today’s 2.3% gain in BTC futures is welcome it is not as bullish as the fact that since the end of May we have seen BTC prices trading in a stable range from $9,000 - $10,000  currently smack dab in the middle of that range currently at $9,505.

The longer we see this stability amidst chaos across all other markets the more we can expect Bitcoin to take a bigger piece of global investing and wealth preservation.

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Previous Reports:

Thursday, June 18, 2020 - 19:29
If one were to take a look at a weekly candlestick chart of BTC futures the continuous contract, you may notice how you could draw a horizontal line to the left and discover that the candle representing the week of June the 12th (almost exactly one year ago to the day) was still struggling to get passed $8,500. The next trading week opened up $700 higher than Friday’s close. This created the... Read more
Monday, June 15, 2020 - 17:44
Bitcoin futures have definitely been caught in a sideways channel but could continue to the downside. On our first chart we draw two lines of the highs of May 8th and drawing one to the highs and one to lows of June 4th. What you will notice is this expanding downward channel has contained all the opening and closing prices including todays. Studies suggest that pricing will continue to fall... Read more
Friday, June 12, 2020 - 19:33
Bitcoin futures are trading up $200 (2.15%) on the day but down about $300 on the week, in today’s report we will go over were we believe BTC futures will go over the next week. Yesterday’s break below the support trend line for the first time since hitting the lows at $4,220 back in mid-March didn’t come with a spike in volume and made a valiant attempt to recover back above it so we did not... Read more