Yesterday was in many ways, a wake up to the entire investing world. The reason being, that despite “emerging market” currencies noticeably weakening since January – the inevitable result of the relentless inflation the Fed’s abusive monetary policy exports – it turned into a full blown crisis.
https://twitter.com/Andy_Hoffman_CG/status/1029733657756364801
- Andy_Hoffman_CG
And while Central banks did their thing propping up stocks and bonds with printed fiat, they could not staunch the blood flow in the much larger, much less “controllable” currency and commodity markets – some of whose declines are accelerating to freefall pace; including Precious Metals – which for all intents and purposes, are being transformed to run-of-the-mill commodities.
https://twitter.com/Andy_Hoffman_CG/status/1029819742851219456
- Andy_Hoffman_CG
https://twitter.com/Andy_Hoffman_CG/status/1029788114313592832
- Andy_Hoffman_CG
https://twitter.com/Andy_Hoffman_CG/status/1029718312148656128
- Andy_Hoffman_CG
That said, the market that BY FAR matters most is the Chinese Yuan/dollar – which is on the verge of breaking 25-year resistance at the key round number of 7.0/dollar. TRUST ME, it the PBOC “allows” the onshore peg to rise above 7.0 – or speculators do it for them in the unofficial “offshore Yuan” market, all hell will break loose - yielding market chaos unlike anything seen in years.
https://twitter.com/Andy_Hoffman_CG/status/1029712225819193344
- Andy_Hoffman_CG
Bitcoin had a great start to the day, rallying sharply off the “Hoffman Line” (currently at $5,810) after AGAIN testing it Monday night…and after all is said and done, is consolidating in the $6,300s. As the world’s most uncorrelated asset class – for now, given its nascence – it doesn’t care about extraneous market events; as at the moment, it seems more concerned with the ongoing consolidation of the 2017 price surge – as well as other issues that in the long-term are immaterial, but in the short-term, investors seem to care about…like Bitmain’s liquidation efforts, ETF approvals, altcoin weakness, etc.
However, the fact remains, that fundamentally, Bitcoin’s outlook has never been brighter – and seeing fiat currencies, Precious Metals, and altcoins get smashed, it unquestionably strengthened further yesterday. That said, the best imaginable benchmark of Bitcoin strength is its “hash rate” – i.e., the amount of computing power utilized on its network. Which, as you can see below, as at an ALL-TIME HIGH – relentlessly rising, with each passing month.
As more and more investors and miners become interested, the Bitcoin network will only grow stronger – until eventually, the demand it fosters overwhelms the supply – which, I might add, will HALVE around May 2016…and again, four years later…and four years after that, etc.