Correction ending as obstacles to new highs recede
New highs are expected by year-end for all of the following reasons:
- The GG Boredom Buy Signal reached a record level of boredom just yesterday and was immediately followed by a rally on strong volume that finally caused a close above the 200-day simple moving average near $64,000 and also above the small nearby resistance at $65,000;
- A few days prior, MicroStrategy (the largest corporate holder of BTC) received approval to sell $1B in bonds, the proceeds of which will be used to both pay down some existing debt and also to buy more BTC;
- The FED Funds rate was cut by 0.50%, with two more cuts expected by year-end;
- The supply of USD had already been increasing as measured by the M2 money supply, with more money creation expected to avoid deflation.
- BTC is the asset most likely to increase in value regardless of whether and when we may face future bouts of inflation and/or deflation;
- Only a future filled with the raging success of AI in increasing the levels of production from the current levels of inputs and continuing over the long term would have the potential to stop fiat money printing and thereby reduce or eliminate the need for BTC as a store of value.
I just wanted to touch base with you to let you know of these key developments, which should soon reward us very handsomely for our enduring strength to continue to HODL (and perhaps even add to our stack.
So, that is all I have time for now, but I look forward to continuing the conversation soon. Hope you have enjoyed and will benefit from reading this article!
Best,
Garry
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Cleared for Take-off was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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