At the end of the day, Bitcoin shows no emotion.Cryptocurrencies need a thriving fake economy to reach Bitcoin evangelist\u2019s astronomical price targets, not ArmageddonThe cryptocurrency couldn\u2019t care less what crypto bulls and bears have to say or how they feel, about the Winklevoss\u2019s $500,000 target or that Microstrategy founder, Michael Saylor, added millions in crypto to his company\u2019s balance sheet. When trying to explain big moves in asset prices, we forget that narrative always follows price. Narratives not only simplify the world, but they distract us from the major economic shifts that cause Bitcoin\u2019s price to soar.The major catalyst behind each of Bitcoin\u2019s historic rallies stares us in the face every time, yet we overlook it: the health of the fake economy. No matter what narrative people use to explain crypto\u2019s latest rally, the thriving fake economy remains the number one driver of Bitcoin\u2019s booming price. In the past few quarters, as growth and inflation have accelerated, cheap money has supported risk appetite, allowing bullish catalysts to form bullish narratives, enabling crypto to hit the headlines once again. It\u2019s no coincidence that the media thrust Bitcoin into the limelight when the fake economy began to prosper.Following the COVID-19 crash, we have also found out that Bitcoin and other cryptocurrencies fail to act as safe havens. Instead, they remain risk assets, flourishing in booming, mediocre, even stagflationary economic environments. Deflation, however, is crypto\u2019s nemesis. When deflationary forces hit the market, volatility spikes and crypto becomes the fall guy, providing the worst returns of any asset class.In Bitcoin\u2019s short history, there have been 33 daily drawdowns of 10% or more in its price ranging from -10% to -39%, with 29 of those 33 drawdowns occurring when economic growth contracted along with inflation, or when the market predicted that both might contract but\u2026<\/p>","protected":false},"excerpt":{"rendered":"
At the end of the day, Bitcoin shows no emotion.Cryptocurrencies need a thriving fake economy to reach Bitcoin evangelist\u2019s astronomical price targets, not ArmageddonThe cryptocurrency couldn\u2019t [...]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/4276"}],"collection":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/comments?post=4276"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/4276\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/media?parent=4276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/categories?post=4276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/tags?post=4276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}