June 8, 2021
We looked at three bubble charts a few weeks ago (bitcoin, Tesla and Lumber), each of which continue to look like the air is coming out.
On that note, bitcoin has taken another few punches in recent days. Over the weekend, a big bitcoin event was held in Miami which included a lot of dogmatic commentary (typical of bubble markets).
Then yesterday, the Justice Department announced that they had recovered $2.3 million of the ransom collected from the Colonial Pipeline hack. It turns out bitcoin isn't safe from government seizure.
Add to that, today the IRS is asking Congress to require large crypto currency transfers to be reported to the IRS.
With the cracks in the security benefit of the bitcoin armor, this morning it traded back down the May crash lows…
| |
|
As you can see in the chart, the price of bitcoin looks very vulnerable to a bigger slide on a break below $30,000. If that happens, gold should start to accelerate higher, as money moves from the “new inflation hedge” to the more trusted, historic inflation hedge.
As I've said before, bitcoin continues to look more like a tool of speculation and corruption, on the path for a typical bubble outcome (i.e. crash and irrelevance). |