In a recent discussion, CryptosRUs delved into the current state of the US economy, inflation challenges, and the unfolding dynamics in the Bitcoin market. The CoinSpeech team collected the most important points from this enlightening appearance. You can find CryptosRUs’s new video below.
The US Economy at a Standstill
The US economy is undergoing significant stress, reflected in “pending home sales slumping to the lowest levels since the start of the pandemic.” Retail giants like Walmart and Target have reported a slow down in consumer spending, intensified by “elevated levels in inflation.” The Federal Reserve’s struggle to balance economic growth and inflation is evident, with CryptosRUs noting that Fed Chair Jerome Powell is “stuck between a rock and a hard place.”
Inflation’s Impact on Bitcoin
Despite the gloomy outlook for the US economy, CryptosRUs sheds light on why Bitcoin and Ether remain resilient. He believes that rate cuts, anticipated earlier than expected, might invigorate the economy, which “is going to be much worse” if left unaddressed. Elevated inflation rates are seen as a mixed blessing; while they erode fiat currency value, they “actually help Bitcoin go higher.”
“Elevated levels of inflation actually helps Bitcoin go higher… that’s why most of us are in Bitcoin because we want to opt out of all this.”
Institutional Adoption and Supply Shock
One upbeat trend is the increasing institutional adoption of Bitcoin. He points to companies like, “Similar Scientific, [which] announced that they purchased 581 Bitcoins for $40 million.” This trend signifies confidence and triggers a supply shock, as more long-term holders and institutions are buying and holding Bitcoin.
CryptosRUs emphasizes, “If you look at like I said long-term holders inactive Supply longer than one year we’re at like 13 million 13 million out of 19 million.” This phenomenon ensures that a substantial portion of Bitcoin remains out of circulation, driving its price up over time.
Market Predictions and Moving Averages
Despite short-term volatility, CryptosRUs is optimistic about Bitcoin’s long-term trajectory. He explains, “Bitcoin tends to utilize this 21 week moving average as a support,” suggesting that periodic drops are natural but the overall upward trend remains intact. He confidently predicts, “it’s just a matter of time we break through six figures to 100,000 plus.”
“When in doubt zoom out and you’ll notice that during recovery times… Bitcoin tends to utilize this 21 week moving average as a support.”
As we navigate these turbulent economic times, the insights from CryptosRUs offer a balanced perspective on the interplay between traditional economic factors and the emerging cryptocurrency landscape.