Why the heck is Bitcoin rallying in the midst of a banking crisis and potentially walking into a recession? Yes, a Bitcoin is absolutely Going Bonkers And I have an idea as to why we're going to talk about it in this video because it's something that you can pay attention to. This is the chart of Bitcoin's performance. You can see that we bottomed at about fifteen thousand, Four Sixty One, only to Now set at about 28 300. In less than five months.

Four months, and about 28 days ago, we hit bottom. And now we're basically well, I should say nearly double where we were. Had you perfectly timed the market and gotten in at the bottom right now, you would be up 83 percent on your Bitcoin. But what we're more interested in is what's going to happen to Bitcoin next.

First, from a TA point of view, it is fantastic to see that the massive downtrend we've had appears to be broken. We can go to the weekly chart to see this downtrend substantially better. Uh, what? We have to get out of the day chart to see it. and we could see that downtrend right here.

It's not a perfect downtrend, but the downtrend has clearly been broken. Uh, we are on an uptrend from hitting bottom here. And when we look at the Fibs the FIB retracement lines, we actually have an important number that we're sitting at right now. And that's because the FIB retracement Next Level about a 23 level is right here.

We're trading right above it right now at about 28 200 Right now. by being at 28 300, we're actually sitting on that retracement now. This candle just began so we'll see if it actually holds up. But if this candle can hold up and we can close above 28.2 maybe it's a sign that that bottom 23 percent for Bitcoin is over Now Why is this happening? Is it? Potentially because now there are discussions underway to basically create a blockchain land registry in Ukraine.

Think about that. A land registry is a database that tracks the ownership of Uh and transfer rights of land. It's typically maintained by a government agency, but Ukraine is deemed to be at least according to the International Community and surveys not according to me. Okay, Ukraine is deemed to be the most quote corrupt country in Europe.

It may also be the most destroyed country, so maybe you know one came before the other. but who knows. Point is, blockchain technology obviously being a distributed Ledger system that allows for the secure and transparent uh or and transparent transactions without the need for a government. or Banks could potentially actually be maintained in a decentralized manner without the odds of Putin just showing up and throwing up little children's play toys and pretending like everything's fine.

I Say that because that's literally what he just did. He just visited the besieged city of Marupal, which is essentially in Ruins and what they did was they set up some little play structures and then they paraded him around those play structures to make it seem like yes, children enjoy living in a ruined City while he looked at architectural renderings for the rebuilding of Marupal. apparently Putin took a helicopter in and uh and then drove around in a car with his Deputy Prime Minister But anyway, some people are saying oh, it's news like this that's is actually leading to excitement over Bitcoin I Don't think so. Actually, in my opinion, the recovery that we're seeing has everything to do with simply an algorithm.

Yeah, and it's not a very difficult algorithm to look at. All you have to do is look at the Federal Reserve's balance sheet and when it goes up, Bitcoin tends to go up when it goes down, Bitcoin tends to go down I Think this is mostly algorithmic. take a look. This is the Federal Reserve's balance sheet and as soon as we realize that the Fed's balance sheet thanks in part due to the banking crisis started ticking up again, which basically is what I call transitory QE All of a sudden, Bitcoin Traders and Algos are having a field day and Bitcoins going up now.

Will it last? We'll see because technically it's transitory QE that's bailing out the banks now. I'll briefly explain that since some people are going to freak out for me saying you know, maybe I'm gonna get I See all the comments already. the FED can't pay money. This isn't kill me man, this is just a loan.

It's very, very simple. Very very simple. The reason I call it transitory QE is because when the FED bails out Banks and increases access to liquidity swaps Basically Dallas when you increase access to Dollars, you could only increase access to Dollars by having more dollars. So here's the cool thing that J-pow can do.

J-pow can say hey, this is my balance sheet. Okay assets and liabilities. all right. This is my balance sheet.

It's gonna balance. Yes, I know I'm not putting equity in here. Don't worry about that right now. Assets: If Jpal says I have a hundred dollars in assets and 100 in cash, well then maybe the FED has debt of a hundred dollars.

Well now if Jay Pal gets a call from you know, a bank and they're like yo, we need some dollars. Uh, can we borrow some? J-pal might be like, well, we don't have any more dollars to give you. but uh, if we just happen to add a zero over here, uh, this will show that we you know we just basically created money out of thin air to balance the balance sheet. We'll just add a zero to our cash position over here.

and we basically just digitally created money. Hey now we have an extra 900 that we could send you. Hey, but you need to pay that back. My goal isn't to actually permanently expand the money supply.

So when you pay that 900 back. I could go back to my QT quantitative tightening. but in the meantime, in a transitory way they have now given the banking system means balance sheet go up as in total assets go up the amount of money the Fed his credit goes up when that goes up. the Algos go Oh ding ding ding.

Last time, this happened during the stimulus era, the Bitcoin went to the moon and it kind of makes sense. Bitcoin was supposed to be an inflation hedge. That's probably highly debatable, especially since it mostly trades along with tech and risk assets. but that's okay.

Uh, we know it has properties that make it resistant to inflation in the long term. Maybe once it stabilizes, it's less of a trading Tool Uh, because of, well, the fact that it has a finite Supply But this isn't to talk about the basics of Bitcoin. it's simply to say why Bitcoin up during Panic Well, probably because QE up and when QE up, even if that's transitory, uh Bitcoin tend to go up. Kind of simple, but now, technically it's supposed to be transitory.

So technically the Fed's supposed to pay that down. Again, nobody's sure if that is going to end up happening and it depends on the depth of the recession. Uh, and the banking crisis. Now what's actually interesting is most people say because Bank credit standards will tighten.

The biggest damage from a recession will actually end up being in company earnings. But what's fascinating about that is there are no earnings for Bitcoin. So is it possible Bitcoin could actually decouple from the stock market? Yes, it is possible because if we go into a QE period while corporations end up getting reamed in earnings, maybe it's possible that Bitcoin escapes. However, there's a counter argument to this.

It's the Goldman Sachs earnings or argument that generally stocks bottom about six to nine months before earnings bottom. So maybe they could. Actually, you could see those massive earnings hits, but you don't actually hit new Bottoms in stocks because a bottom in earnings usually occurs six to nine months after a bottom in. uh um, in the stock prices.

So it's interesting. But in case you're wondering why Bitcoin up. My opinion is very clear. It is simply algorithmic trading that sees QE up push Bitcoin invest in bit by Bitcoin I Think there are plenty of institutional programs that make these sorts of Trades uh on on a regular basis and the cool thing is you can actually operate them 24 7.

you don't just have to wait for the the closing and opening balance right or the opening and closing balance. You should say that way. Anyway, if you want more of my perspectives, make sure to check out the programs on building your wealth Link down below. We've got a coupon expiring on the 22nd that is the the Fomc Day 11 59 PM Prices will be going up.

You get a price guarantee always going forward making sure you get the best price your lifetime access to all the member live streams. Today We will be analyzing and phase in detail because finally it's getting closer to my price. Target My price target for end phase has been gloriously waiting for it to get closer to 164. And it's almost there.

We got to talk about it.