Next BTC Breakout to $100k?

Crypto-Brief-Dec.11

Bitcoin's Next Big Move

After reaching an all-time high of over $58k, Bitcoin corrected near $43k and has since rebounded very close to all-time highs again.  Will Bitcoin continue to surpass all times highs or will it retest the $42k support again?  If Bitcoin breaks through all-time highs with strength the next move may be a sustained upward move towards $100k. po

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Bitcoin Dominance

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Bitcoin dominance has been flat since February but altcoins may continue its outperformance since the beginning of the year. 

Stocks Rebound

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The SP500 rebounded from the downturn we saw in the first week of March.

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The Nasdaq 100 had a significant correction since mid-Feb but has since rebounded from the resistance at the 12,400 level.

Bond Yields Raise Concern

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The rapid increase of the 10yr Treasury yield due to higher inflation expectations has caused concern in the markets about potential future rate hikes and higher borrowing costs for companies.  

US Dollar Appreciates

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The dollar has appreciated since the start of 2021.  Higher treasury yields may be attracting more US dollar buyers.

Gold Drops

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Gold dropped below its support at 1740 in the wake of US dollar strength combined with higher bond yields. 

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Silver remains flat possibly because of downward pressure from gold prices, but some upward pressure from commodity inflation.

M1 Reclassification

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The Fed continues its money printing policy.  Banks no longer need reserves and money market  instruments with maturities as long as a year and with credit risk seem to now be counted as bank reserves for M1.  These are significant changes and could lead to another major banking crisis.   

Credit

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Credit spreads are low.  For now.  

Conclusion

The reclassification of money market funds as M1 is significant.   Could the Federal Reserve lose control and could this lead to an unraveling of our fiat monetary system?  Or will the Fed be able to kick the proverbial can down the road for more than a few more years.  Whatever the case, Bitcoin is likely your best bet in uncertain economic times.  Keep accumulating. $100k is next.  

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