Bitcoin (Bitcoin) May hit a record high, but new research shows that this may just be another bubble.
Uncover one theory This is likely to anger the Bitcoin bulls, as analysts and materials scientists revealed that there seems to be a strong correlation between the Bitcoin price cycle and China’s debt cycle.
Doubts about the power of Bitcoin halving
As BTC/USD hit a record high in April 2021, people have high expectations for another new high before the end of the year.
Looking back on the history of Bitcoin, Material Scientist showed that the top of Bitcoin’s previous cycle coincided with the top of China’s debt cycle.
The ebb and flow-seen in April and today-also marked the cooling of Bitcoin. The analyst believes that not only does this mean that Bitcoin behaves like any other asset, but that the supply contraction after each halving is irrelevant.
He drew inspiration from investor Ray Dalio, and Ray Dalio used his Own research Enter the Chinese economy.
“I think Dalio is completely right. The bubble is caused by the debt cycle. It is obviously relevant here,” he said in a Twitter comment.
“So, what if the BTC halving argument is BS, and it is actually only about China’s debt cycle?”
this Narrative based on halving Since its mathematically designed supply drops every four years, it requires Bitcoin to appreciate relative to infinite assets. These increases should be an order of magnitude higher than the previous one and are clearly visible in tools such as the stock-to-traffic series of the Bitcoin price model.
As China and its debt become the focus Evergrande crash However, the reaction to the idea of the debt cycle has been favorable before due to the coronavirus.
One response even emphasized that every time China’s debt cycle reaches its peak, Bitcoin Whales will dump their holdings-April 2021 is no exception, setting a record high.
Since it is now at a low level, the possibility of a rebound in BTC price trend looks more favorable.
As Cointelegraph ReportDario himself has been paying attention to his position on Bitcoin recently.
He warned this month that regulators could still “strangle” it with unfavorable policies — which was also flatly rejected by its most famous supporters.
These include Saifedean Ammous, the author of the “Bitcoin Standard”, who believes that as the most difficult currency to create in history, Bitcoin will become an inevitable purchase by the government, even if it is not corrupt. Forcing them to surrender power over the currency.
This week, Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, also discuss Bitcoin is the concept of “free Trojan horse” because it is related to government monopoly.