Bitcoin trades in tight ranges, trading between $20,000 and $21,000. Major resistance levels were overcome by the cryptocurrency and it could be rejected again.
Similar Reading| TA: Ethereum Revisits Key Support, Can The Bulls Protect More Losses
At the time of writing, BTC’s price trades at $20,600 with a 1.4% loss and a 7% profit in the last 24 hours and last week respectively.
Bitcoin trending downwards since the late 2021 peak of $69,000 when it reached its all-time high. Since then, BTC’s price has lost over 60% of its value and could continue trending to the downside in the short term.
However, former CEO at crypto exchange BitMEX Arthur Hayes claims a “Doom Loop” has begun in the macroeconomic arena. Hayes tweeted the Euro (EUR), daily chart, and compared it to the U.S. Dollar.
For the first time, in twenty years, the European currency was parity with its North American counterpart. The Euro is similar to Bitcoin and has trended to the downside ever since 2021. It could even continue its declines.
It was caused by conflict in Ukraine with Russia and an increase inflation that prompted central banks worldwide to act by cutting their balance sheets or raising their interest rates. The European Central Bank, (ECB), has failed to make an effective decision.
It is contributing to the currency’s decline. This “Doom Loop” is part of Haye’s scenario where the Euro and the U.S. dollar depreciated in favor of Gold and Bitcoin.
The Russian financial system was cut off in 1991, and this scenario started to unfold. People and countries will choose to buy these commodities over central bank fiat currency in the next decade. Hayes explained:
as gold succeeds so will Bitcoin (…). Why should any central bank “save” in any Western fiat currency, when their savings can be expropriated arbitrarily and unilaterally by the operators of the digital fiat monetary networks?
Is Bitcoin the Next Big Thing?
These assets may eventually reach $1 million and $10,000 respectively due to the uptrends in Bitcoin and Gold prices. The “Doom Loop” Hayes described is mostly a “mental shift” in financial entities, a decline in the only thing backing fiat currency: trust.
Related Reading: Why Peter Brandt Believes Cardano’s Price is The Definition of “Ugly”| Why Peter Brandt Thinks Cardano’s Price Is The Definition Of “Ugly”
Global governments and institutions cannot trade in trustless systems when there is not trust. Hayes expects Bitcoin to see a dramatic rise in price. This process could take some time, but it may happen in the next ten years.
The #DoomLoop is now in full swing. 1 EUR = 1 USD Be prepared to pay YCC, $BTC and $1,000,000 for YCC. These things can take some time so please be patient.
