Bitcoin Always Moves After This Happens

Bitcoin is positioned for a significant breakout, historically following gold's rally, with current market indicators suggesting an imminent 'great rotation' of capital into crypto.

• Gold's overextended rally historically signals an impending rotation of capital.

• The Bitcoin to gold ratio is at a critical support level, indicating an undervalued Bitcoin.

• Anticipated economic expansion and liquidity injections are set to fuel a major market upturn.

Despite the current bearish sentiment surrounding crypto, historical patterns and market indicators suggest a major Bitcoin rally is on the horizon. Gold's recent surge, driven by institutional buying and a declining trust in the US dollar, typically front-runs Bitcoin's breakouts. Coupled with an anticipated economic expansion and liquidity injections, conditions are aligning for a substantial upward movement in Bitcoin.

Gold's Overextended Rally

• 00:00:34 Gold is currently experiencing an 'insane run,' with prices up over 80% since January last year, attracting significant investor interest as a 'safe haven' asset. Central banks worldwide are increasingly accumulating gold, selling US debt, contributing to its vertical ascent; however, the yearly Relative Strength Index (RSI) for gold hitting 91 or higher has historically marked the end of its run, followed by multi-year corrections.

Declining USD Dominance

• 00:02:59 A significant factor contributing to gold's rally is the institutional exodus from US debt, as central banks globally opt to hold gold over US Treasuries. The US dollar's share of foreign reserves has dropped from 71% in 2000 to 58% in Q1, marking the steepest two-decade decline since the Bretton Woods Agreement, driven by concerns over US debt levels and the 'weaponization' of the dollar.

Bitcoin's Historical Pattern

• 00:07:16 The BTC to gold ratio on the monthly chart is at a historical and critical support line, which has previously coincided with Bitcoin's absolute bottoms, such as in February 2019 and December 2022. Historically, gold acts as a lead scout for Bitcoin, front-running its breakout by four to seven months, suggesting Bitcoin is currently very cheap relative to gold and poised for a 'ketchup trade' or catch-up rally.

Impending Economic Shift

• 00:09:28 An economic expansion is anticipated, with indicators like the ISM PMI, a leading manufacturing indicator, currently below 50, suggesting a potential historical expansion period after a contraction. Coupled with 'QE light' injections from the Federal Reserve, potentially lower oil prices, and proposed mortgage-backed security QE under a new administration, a 'liquidity tsunami' is expected to boost all markets, including Bitcoin.