Diversitas is an actively managed crypto strategy with a focus on Bitcoin and DeFi.
Sälj-/exitkostnad (per transaktion)0,50 %
1/4
Morning update:
Yesterday, Bitcoin erased all the losses printed the day before. It is now again trading just below its main resistance👀 Hopefully, we can finally break above it and pump toward the 30k price target🚀$BTC
The breakout would not surprise us as the FED continues to pump more money into the system. The Fed's balance sheet just expanded further and has now erased ⅔ of the tightening we have seen over the past 6 months. All this in just 2 weeks🤦♂️
2/4
Meanwhile, the costs of insuring against Deutsche Bank default (CDS prices) jumped up in a violent move while share price plunged as stress in the banking system keeps rising following the Fed rate hike. Apart from the FED the Swiss National Bank, as well as ECB, raised interest rates👀
More banks are about to blow up, just a matter of time⌛
3/4
Individuals all around the world are worried about the banking crisis and continue to withdraw their money from the bank. While this will cause pain in the banking sector, it will likely drive up the prices of the assets. At the moment we are seeing a big inflow into the US money market funds. Similar behavior can most likely be observed when it comes to crypto and precious metals. This shows that people do not trust their banks anymore🤔
This is fuel for our rocket🚀
4/4
Lastly, the treasury announced a small-value buyback operation, likely leading to yield control. It's crazy how fast things have started to change. The devaluation of the USD is in full swing📉
The case for Bitcoin as a store of value has never been stronger👀 $BTC
1/4
Morning update:
Things played out as expected, the FED raised rates by 25bps and caused a lot of volatility in the markets. Based on the FED’s projections, there will be no cuts this year so it looks like they will continue to hike until something much bigger blows up👀 At this point, this actually may be the only way to get inflation down📉
The second option is that they simply want to blow up the financial system to implement the CBDC’s. This has been one of the conspiracy theories that is becoming more and more realistic🤔
That is what I am thinking is going on
2/4
Secondly, here is a potential scenario for the coming months👇
- Fed raises rates 1 more time in May.
- Something bigger breaks.
- Fed pauses rates.
- People begin losing jobs.
- Unemployment shoots up to 5-10%.
- Markets drop into recession.
- Fed begins cutting rates.
- Fed turns on money printer (QE).
- Gov bails out big banks.
- Markets finally bottom.
- Inflation goes near 2%.
- Interest rates near 0-2%.
- Bull market begins in 2024.
Keep in mind that this is a playbook for the stock market. Hard to say how Bitcoin will react to all this mess but we will soon find out🤔
3/4
That being said, Bitcoin dumped all the way down to $26,500 but bounced hard just a few hours later. For now, we are safe but we will continue to monitor the price action👀
One of the reasons why $BTC went down may also be the fact that Coinbase received a Wells notice. They are already fighting back and have posted a great blog post explaining the situation. If something it is now clear that the US feels threatened by crypto and will continue to fight it. They likely see Bitcoin as an alternative to its collapsing banking system and will try to fight it🤔
4/4
For us, the plan is simple, we will follow our algos and exit if we get more bearish signs. For now, we keep riding the crypto waves🌊$BTC
1/2
Morning update:
Apart from Russia announcing that they will start to use Chinese yuan instead of US dollars to settle trade with Asia, Africa, and Latin America not much happened over the past 24 hours.
This is a huge announcement though as it may have many consequences. The US won’t accept this easily, so watching how things play out will be interesting👀
https://www.wsj.com/articles/russia-turns-to-chinas-yuan-in-effort-to-ditch-the-dollar-a8111457
2/2
That being said, the dollar moved down on the news which is good for BTC and crypto. That being said, the real test will be today at the FOMC meeting. Volatility is guaranteed, the only question that remains is how will BTC react to the news. Many expect a pause or even a cut while we still think they should continue to hike if they want to get inflation down🤔
Hard to predict what is gonna happen so let's simply grab a popcorn and enjoy the clown show👀
@AutogrowCrypto very likely. The US already announced the FedNow service launch for July 👀
https://www.federalreserve.gov/newsevents/pressreleases/other20230315a.htm