Just a bubble? New research shows Bitcoin price is outperforming China’s debt cycle
Bitcoin (BTC) could hit a new all-time high, but it could just be another bubble, according to new research.
Reveal one theory The analyst Material Scientist has shown that this appears to have a strong correlation between the Bitcoin price cycle and China’s debt cycle.
Doubts about the power of the Bitcoin halving
With BTC / USD hitting an all-time high in April 2021, expectations are high that another coin will arrive before the end of the year.
Looking back on the history of Bitcoin, the Material Scientist reveals that the earlier peaks of the Bitcoin cycle coincided with the peaks in China’s debt cycles.
The ups and downs and currents – as seen in April of this year compared to today – also mark the cooling of Bitcoin. This means, the analyst argues, not only that Bitcoin behaves like any other asset, but also that its supply bottleneck is irrelevant after each halving.
He conveyed ideas from investor Ray Dalio, who is known for his own research on Chinese economic behavior.
“I think Dalio is right that bubbles are created by debt cycles. And it’s clearly correlated here, “he said in Twitter comments.
“What if the story of the BTC halving is BS, and it really is all about China’s debt cycles.”
The story is based on the half-claim that Bitcoin is appreciating in value against an infinite asset thanks to its mathematically designed supply, which decreases every four years. Those gains should be bigger than the last and be clearly visible in tools like the Bitcoin price family of stock-to-flow models.
However, given China and its debts thanks to the Evergrande collapse, and before that thanks to the coronavirus, the responses to the debt cycle idea have been positive.
One response even highlighted that Bitcoin whales sell their holdings after each peak in the Chinese debt cycle – with April 2021 being no exception and being an all-time high.
Given the current lows, the chances of a recovery in BTC price action look better.
Bitcoin becomes a Trojan horse
As Cointelegraph reported, Dalio himself recently expressed his stance on Bitcoin.
Related: ‘Best Bear Market Ever’ – 5 Things To Watch For Bitcoin This Week
This month, he warned, regulators could still “kill” it with negative policies – a similar thing that has been flatly denied by its most famous proponents.
Among them is Saifedean Ammous, author of the Bitcoin Standard, who argues that as the hardest money ever created, Bitcoin will be an inevitable buy for governments, even if its immutable nature has forced them to lose their power over money submit.
This week also Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation to discuss Concept of Bitcoin as the “Trojan horse of freedom” in relation to state monopolies.
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Author
Bitcoin
Just a bubble? New research shows Bitcoin price is outperforming China’s debt cycle
Bitcoin (BTC) could hit a new all-time high, but it could just be another bubble, according to new research.
Reveal one theory The analyst Material Scientist has shown that this appears to have a strong correlation between the Bitcoin price cycle and China’s debt cycle.
Doubts about the power of the Bitcoin halving
With BTC / USD hitting an all-time high in April 2021, expectations are high that another coin will arrive before the end of the year.
Looking back on the history of Bitcoin, the Material Scientist reveals that the earlier peaks of the Bitcoin cycle coincided with the peaks in China’s debt cycles.
The ups and downs and currents – as seen in April of this year compared to today – also mark the cooling of Bitcoin. This means, the analyst argues, not only that Bitcoin behaves like any other asset, but also that its supply bottleneck is irrelevant after each halving.
He conveyed ideas from investor Ray Dalio, who is known for his own research on Chinese economic behavior.
“I think Dalio is right that bubbles are created by debt cycles. And it’s clearly correlated here, “he said in Twitter comments.
“What if the story of the BTC halving is BS, and it really is all about China’s debt cycles.”
The story is based on the half-claim that Bitcoin is appreciating in value against an infinite asset thanks to its mathematically designed supply, which decreases every four years. Those gains should be bigger than the last and be clearly visible in tools like the Bitcoin price family of stock-to-flow models.
However, given China and its debts thanks to the Evergrande collapse, and before that thanks to the coronavirus, the responses to the debt cycle idea have been positive.
One response even highlighted that Bitcoin whales sell their holdings after each peak in the Chinese debt cycle – with April 2021 being no exception and being an all-time high.
Given the current lows, the chances of a recovery in BTC price action look better.
Bitcoin becomes a Trojan horse
As Cointelegraph reported, Dalio himself recently expressed his stance on Bitcoin.
Related: ‘Best Bear Market Ever’ – 5 Things To Watch For Bitcoin This Week
This month, he warned, regulators could still “kill” it with negative policies – a similar thing that has been flatly denied by its most famous proponents.
Among them is Saifedean Ammous, author of the Bitcoin Standard, who argues that as the hardest money ever created, Bitcoin will be an inevitable buy for governments, even if its immutable nature has forced them to lose their power over money submit.
This week also Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation to discuss Concept of Bitcoin as the “Trojan horse of freedom” in relation to state monopolies.
.
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