Hello Again, $40k

Chart of the Day

$40k! Phew. After establishing a strong foothold above $38.5k and the 100-hourly moving average, the price of Bitcoin could be on track to extend its gains to the upper $41k region in the near term. In the macro world, the recent rally stands in stark contrast to the decelerating central bank asset purchases. Historically — though the timeframe is too short to discern any definitive pattern — the peak of each Bitcoin cycle coincides with year-on-year growth in major central bank balance sheets. With the Fed dismissing the current inflation red flag as “transitory”, we have reasons to believe that if the trend of debt monetization were to continue, it could trigger greater interests in defensive assets, including cryptocurrencies.