Bitcoin is impressive for its effortless glide at ridiculous heights. In retrospect, we can see that its deep-pocketed sponsors used the 2022 crash to accumulate more of the stuff with the sort of bold confidence that is rarely seen in exchange-type markets. Do big banks that have endorsed bitcoin know something? Only that none of them will break ranks by selling cryptocurrency. The reason is that they have little in inventory; it’s all just a game to them — one with huge upside potential if bitcoin ever becomes fungible for small transactions. For the time being, though, it is only a nominally usable form of currency, inferior to credit cards or cash and held almost entirely for speculative purposes. It is just sardines for trading, not eating, as the old joke goes.
Considered from a technical standpoint, the weekly chart shows a clear target of at least 81,069, about $7.300 above the record 73,791 high achieved last March. However, the correction has dragged on for so long that I doubt it is merely to support a rally that would achieve only a marginal new high. In any event, bitcoin has been compressing for long enough that it would appear DaBoyz have $100,000 in mind, and my hunch is that they will succeed in moving it there. My forecast for the stock market is not nearly as bullish, and it’s difficult to imagine what scenario would drive such a divergence. However, I am not buying the silly notion that bitcoin, which has zero intrinsic value, will replace dollars as the coin of the realm, much less supersede gold as a safe haven when the banking system collapses. If anything, the implosion will forever destroy our misplaced confidence in all types of virtual money.