“Bitcoin and gold are both signalling the end of the monetary order.”
~ Mark Jeftovic, The Bitcoin Capitalist
Written by Bryan Lutz, Editor at Dollarcollapse.com:
Over the past five days, Bitcoin shot up almost $20,000.
Gold also shot up about 30% this year.
In response, Mark Jeftovic dropped this blog post, entitled “Welcome to “Up-Only” Mode“ where he shows the monetary systems massive pivot away from fiat towards an entirely new monetary system.
A monetary system where gold (and he believes Bitcoin) will form a new system of decentralized finance.
Over the last four years, Bitcoin has formed one massive cup and handle.
Now, it’s breaking out.
And over the last 14 years, gold has formed an even bigger cup and handle – a massively bullish technical pattern, indicating a break out like Bitcoin’s, past resistance.
Now, if you were to compare both Bitcoin and Gold in their long-term charts, you’d see a similar pattern.
Gold:
Bitcoin:
Just like in the relative short term, these long-term charts are very similar.
So, what exactly is pushing these two assets into semi-permanent “Up-Only Mode”?
Mark uses this process as a benchmark:
“Alongside these truly staggering debt levels, we have the global bond market: $120 Trillion USD (of which close to $15 Trillion actually carries a negative yield) and the M2 supply of fiat USD is somewhere in the $20T range.
To understand The Great Reset, imagine the $120 Trillion in bonds and all the M2 money supply as huge balloons, whose stems are connected to a steampunk-looking contraption that is sucking the air out of those two balloons, and pumping it out the other end into much smaller balloons, with names like “Gold” and “Bitcoin”.
The last part of the analogy is to remember one thing: pay no attention to the numbers (the “nominal value”) on the Bond and M2 balloons.”
What you really want to keep track of is the airflow from left to right.
That airflow is called “purchasing power”.
Money is slowly flowing out of USDs and global bonds and into gold and Bitcoin.
Here is a look at market cap for both since the Fed printed 60% of the total USD money supply during the pandemic.
Gold has grown more significantly, but then again, gold has been around much longer, while Bitcoin has yet to reach 2% of gold’s market cap(It’s still at less than $2T).
Yet, gold and Bitcoin are growing in value vs. shrinking US Treasury Bonds…
In fact, shrinking into the negative.
So, here we are…
Are gold and bitcoin in “Up-Only” Mode?
If you want to hear more from Mark, you can sign up on his free list, here.
And, if you want to take advantage of gold, head here, to the Dollar Hedge Insider homepage.
