Chainfeeds Summary:

Let politicians do their job, and we'll do ours: buy Bitcoin. The Chinese version was compiled and published by Bitpush.

Source:

https://bitpush.news/articles/7337060

Author:

Arthur Hayes

Viewpoint:

Arthur Hayes: On Monday morning, I woke up to see the Trump pump in action. On Truth Social, Trump reiterated that the US will establish a strategic reserve filled with Bit and a bunch of shit coins. The market surged on the "news." This is nothing new, but the market sees Trump's reaffirmation of his crypto policy intentions as an excuse for a violent Dead Cat Bounce. For this reserve to have a positive impact on prices, the US government would need the ability to actually purchase these cryptocurrencies. There is no secret mountain of dollars waiting to be deployed. Trump needs help from Republican lawmakers to raise the debt ceiling and/or revalue gold to match current market prices. These are the only two ways to fund a crypto strategic reserve. I'm not saying Trump won't keep his word, but the timeframe for purchases to start may be longer than the leveraged traders can hold out before getting liquidated. So, I'd take profits on the rallies. Bit and the broader crypto markets are the only true global free markets that exist. Bit's price is telling the world in real-time how global society views the current state of fiat currency liquidity. Bit hit a high of $110,000 just before Trump's coronation in mid-January and touched a local low of $78,000, a decline of around 30%. Bit is screaming that a liquidity crisis is imminent, even as US stock market indices remain near all-time highs. I believe Bit's signal, so a severe correction in the US stock market driven by recession fears is coming soon. If Bit leads the market down, it will also lead it up. Given the tiny financial tremors that rapidly spread into full-blown panic due to the massive leverage embedded in the system, if my overall forecast is correct, we won't have to wait long before the Fed acts. Bit will crash first and then lead the rebound. As for the rest of the decrepit traditional financial system, led by US stocks, they'll be late to the party, having to endure a crash first before chasing the rally. I'm confident we're still in a bull market cycle, so the worst-case bottom will be the previous cycle's all-time high of $70,000. I'm not sure we'll even go that low. A positive dollar liquidity signal is that the US Treasury General Account is declining, providing a liquidity injection. Based on my confidence in Trump as a financial type and his ultimate goal, Maelstrom has increased its exposure when Bit is trading in the $80,000 to $90,000 range. If this is just a "Dead Cat Bounce" (a temporary rebound before continuing to decline), I expect Bit may retest around $80,000 again. If the S&P 500 or Nasdaq 100 index falls 20% to 30% from its all-time high, combined with a major financial institution teetering on the brink of collapse, we may see a full-blown global market contagion. This means all risk assets will be hammered simultaneously, and Bit could break below $80,000 and even test $70,000. Whatever happens, we'll be cautious in building positions on the dips, without leverage, in anticipation of the ultimate collapse of the global (especially US-led) fiat financial markets and their subsequent re-inflation, which will propel Bit to $1 million or higher!