$BTC & Crypto Direction

Macro Perspectives: Mon 27 Sep 21

We woke up on Friday morning (24 Sep 21) with news of  the Chinese government having declared all cryptocurrency activity is officially illegal.

Global governments have made it very clear that they have no interest in competing with a private digital monetary system. If we listen to them, we should have the expectation that they will regulate private cryptocurrencies out of existence.

Remember, over 60 global central banks (the BIS) are already at some stage of considering a central bank-backed digital currency. The Fed is due to issue a report this month on the viability of a digital dollar. Powell said last week that it will be a government-wide decision. We already know the majority vote in government will favor it.

The Chinese central bank has already announced a 2022 launch of a digital yuan.

Let's revisit an updated chart from one of my May Perspectives, and take a look at how the chart of the bubble in Chinese stocks back in 2015 compares to the chart on bitcoin.

With this chart in mind, and with the declared ban in China on all crypto activity in mind, consider this: China accounts for 60% of global bitcoin mining...the largest trading volume in bitcoin comes from China...and the third largest holders of bitcoin in the world are in China.