The Bitcoin funding rate and 3-month annualized basis rates are moving to levels that signal to traders it may just be the “calm before the storm.”
Bitcoin Dips 7% to Near $40K; Pullback Will Be Short-Lived, Say Experts
Bitcoin endured its worst daily drawdowns in 4 months, dipping over 7% to nearly $40,000. $XRP, $LINK, $ADA declined 8%-10%.
Elon Musk slams NFTs but ends up arguing the case for Bitcoin Ordinals
Elon Musk argued that NFT projects “should at least encode the JPEG in the blockchain,” to the delight of many Bitcoiners.
Bitcoin Enjoys Growing Favorable Conditions, Top Analyst Says
Bitcoin analyst and fervent BTC advocate, Will Clemente, has recently shed light on a compelling macroeconomic landscape unfolding, potentially favoring the world’s leading cryptocurrency.
Clemente suggests that the United States is currently facing an unavoidable predicament, where it must increase its money supply significantly to manage its mounting debt burden. This, he argues, sets the stage for substantial currency debasement in the near future.
Clemente’s analysis hinges on the growing probability of the United States further expanding its money supply over the coming years. With the relentless trend of rapid money printing, he raises a critical question: Which assets will emerge as the top performers in this volatile financial landscape? Among the contenders, including the stock market, commodities, real estate, and venture/angel investing, Clemente’s resounding answer is Bitcoin.
Despite being down nearly 70% from its 2021 highs, there is still a high likelihood that Bitcoin succeeds.
With the market going sideways, Bitcoin volatility near all time lows, and me losing my mind, decided to compile a few thoughts on why:
It is widely known that Bitcoin… pic.twitter.com/kNo9RBvyiR
— Will Clemente (@WClementeIII) September 19, 2023
Bitcoin: The Digital Safe Haven
As Clemente delves into his rationale, he highlights the unique attributes that make Bitcoin stand out in this tumultuous economic climate. He emphasizes that while gold has long been considered the go-to asset during periods of currency debasement, Bitcoin’s upcoming halving event will significantly bolster its stock-to-flow ratio, surpassing even that of gold and silver.
Furthermore, Bitcoin’s advantages of being highly transportable, divisible, verifiable, and provably scarce position it as a superior alternative to traditional commodities.
The sentiment surrounding Bitcoin’s potential is not limited to crypto enthusiasts and analysts. Best-selling author of “Rich Dad Poor Dad,” Robert Kiyosaki, has echoed similar sentiments. Kiyosaki emphasizes the urgency of taking action in the current economic climate.
He dismisses questions about future price predictions for Bitcoin, gold, and silver in 2025 as “silly.” Instead, he urges individuals to focus on their present holdings, emphasizing that time is running out to seize the opportunities presented by these assets.
Act Now Before Prices Surge
Kiyosaki contends that Bitcoin, gold, and silver remain relatively affordable investments at present but warns that this window of opportunity is closing fast. He predicts that as more people recognize the potential of these assets and rush to acquire them, prices will inevitably surge.
I am constantly asked “What price will gold, silver, or Bitcoin be in 2025. My reply is that is a silly question. More important question is how many gold, silver, Bitcoins do you have TODAY? Gold, silver, Bitcoin are bargains today… but not tommow. America is broke. Buy GSBC…
— Robert Kiyosaki (@theRealKiyosaki) September 19, 2023
As Bitcoin’s current price hovers around $27,028.81, the recent 2.8% seven-day increase underscores the growing interest in these digital and precious metal assets.
The macroeconomic stage appears to be set for Bitcoin to shine amidst concerns about the U.S. economy. Analysts like Will Clemente and financial experts like Robert Kiyosaki are sending a clear message: the time to act is now, as the future of Bitcoin and precious metals becomes increasingly promising in an uncertain financial world.
Featured image from Inside Bitcoins
Bullish AF: Bitcoin At $42K, Comparing Today’s Leverage With That Of February
Bitcoin reached $42K before, but not with these characteristics. The market seems healthy and practically unleveraged. Greed is just showing its face after months of Fear. How did we get here? Calmly and consistently stacking sats, that’s how. What does this mean for the future of BTC’s price? Is the rocket about to take off?
Related Reading | Volatility Inbound: Bitcoin Traders are Upping Their Leverage as Election Nears
Before going into that, let’s look at the chart from Bitcoin Magazine’s Dylan LeClair. It gives the US Central Bank balance sheet a run for its money as the most bullish Bitcoin chart.
Leverage the first time we hit 42k $BTC in February compared to now.
This is all spot driven. pic.twitter.com/QjtJ0zWSgj
— 🟠Dylan LeClair🟠 (@BTCization) August 6, 2021
The difference is astonishing. In February, Bitcoin got here by borrowing money from exchanges. The futures market was on fire and growing. The bloodbath was a month away. Nowadays, leverage is just raising its head after a few months in the red. The casino is almost empty. Real money drove the climb back from hell. Gradually, step by step.
Does this mean we’re up for a sudden blast into space?
BTC price chart for 08/07/2021 on Bitstamp | Source: BTC/USD on TradingView.com
If Not From Leverage, Where Is The Money Coming From?
Some institutions are probably buying. Chances are we’ll see Bitcoin holdings declared next quarter. However, according to on-chain analyst Will Clemente, there’s evidence that real, everyday people, are constantly joining the network. And those new Bitcoiners are joining an army of believers that never stop buying.
Bitcoin’s Gini coefficient is getting healthier and healthier. According to William Clemente, when you filter out ETFs and Grayscale, on-chain analytics show that “over time whales are just distributing their coins.” According to him, entities with less than 10 BTC never stop buying. “Since May 19th, retail has been accumulating more heavily than the whales have.” Each day that passes, Bitcoin’s “healthy distribution of the network” gets better and better.
The Dollar-Cost Averaging investment strategy is gaining traction among a sector of the population. And it seems to be spreading. Investopedia defines DCA as:
An investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset’s price and at regular intervals. In effect, this strategy removes much of the detailed work of attempting to time the market in order to make purchases of equities at the best prices.
Related Reading | The One Line In Bitcoin Everyone In Crypto Is Watching
What Will Happen When Leverage Comes Back Into The Picture?
If greed is returning and leverage is available, people will use it. What will happen then? Go back to LeClair’s chart and check out October 2020, the last time that the leverage was in the red. Could we be entering a run the size of what followed that? The chart that this pseudonymous analyst presents suggest that.
#Bitcoin weekly candles are sized similar to the run from 11k to 19.5k.
19.5k is where we had serious resistance for few weeks (as now with 42k). Then it was off to the races and the price tripled.
Tripling from here is 120k. pic.twitter.com/1gBFbM00MX
— Kevin ₿ebee (@kevinbebee) August 6, 2021
We might be at the cusp of a historical moment. The indicators and characteristics seem healthy and ready for blast-off. The community’s morale is high despite the regulatory threats of late. If all of these analysts are right… we’ll see you on the moon, bulls!
Featured Image by Comfreak from Pixabay – Charts by TradingView
New Bitcoin Users Activity Spikes To New All-Time Highs, What Does It Mean?
The new Bitcoin users graph is a sight to behold. Even though Bitcoin’s price was horizontal for a while there, the network kept growing. And, with each new participant, the network expands infinitely. And, with that, the value of the network increases in the same magnitude. Such is the nature of the “network effect” phenomenon.
That is what this chart by on-chain analyst Will Clemente shows:
The number of new users coming on the Bitcoin network continues to reach new all time highs. pic.twitter.com/yttPlhJBPd
— Will Clemente (@WClementeIII) August 4, 2021
As one of the hosts from the Alt-Coin Daily show said, “The traders control the short-term market.” However, if we’re talking long-term, this is one of the most bullish charts you’re going to see. And, luckily for us, Clemente himself explained the chart’s nuances on said YouTube show.
Related Reading | TA: Bitcoin Regains Strength, Why Bulls Eye Strong Rally above $40K
The Whales Are Distributing Their Coins
According to Investopedia, the Gini coefficient is:
The Gini index, or Gini coefficient, is a measure of the distribution of income across a population developed by the Italian statistician Corrado Gini in 1912. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population.
Bitcoin’s Gini coefficient is getting healthier and healthier. According to William Clemente, when you filter out ETFs and Grayscale, on-chain analytics show that “over time whales are just distributing their coins.” According to him, entities with less than 10 BTC never stop buying. “Since May 19th, retail has been accumulating more heavily than the whales have.” Each day that passes, Bitcoin’s “healthy distribution of the network” gets better and better.
New Bitcoin Users, A Very Appealing-Looking Chart
According to Clemente, his “very appealing looking chart” shows “the net users growth of the network.” His methodology is simple. He looks for “clusters of addresses that look like one person,” those are the entities. Then, he subtracts “the amount of new entities coming on-chain” from “the entities that look like they’re dormant.” The result is the daily new Bitcoin users.
As the chart clearly shows, we recently achieved an all-time high in new Bitcoin users per day. However, there’s more. According to Clemente, the story is in the “incremental increase between each mayor peak.” At the peak of 2011, 1050 new users came into the network per day. In the two 2013 peaks, the number went from 1500 to about 5000 a day. In 2017’s best moment, Bitcoin was bringing in 40000 new Bitcoin users a day.
Related Reading | Bitcoin Set To Outperform In Second Half Of 2021, Bloomberg Analyst
All of those peaks had a dramatic drop back down. If we look at 2021, in general, it’s a “slow grind higher.” So, “If this is the peak, we haven’t seen this drop-off in new user growth that we had each cycle.” On the contrary, “we just crossed the all-time high of 2017.” If Clemente is right, those new Bitcoin users mean we’re nowhere near the top.
BTC price chart for 08/06/2021 on Bitstamp | Source: BTC/USD on TradingView.com
What Do The Greats Say About Bitcoin’s Users?
The legend states that once upon a time legendary investor Paul Tudor Jones asked Stan Druckenmiller:
“Do you know that when Bitcoin went from $17,000 to $3000 that 86% of the people that owned it at $17,000, never sold it?” Druckenmiller replied: Well, this was huge in my mind. So here’s something w/ a finite supply & 86% of the owners are religious zealots.
Will the new Bitcoin users act the same way when the season of the bear arrives? Only time will tell.
Featured Images by History in HD on Unsplash – Charts by TradingView
