How The Latest Macroeconomic Trends Are Impacting Bitcoin

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In this episode of Bitcoin Magazine’s “Fed Watch: podcast, CK and I continued our monthly series with Dylan LeClair, author of the Deep Dive report. We had the opportunity to go over the metrics in the bitcoin market that he is watching and is an expert in. They have a free version of the report that comes out daily, and an exclusive paid version monthly and yearly. Follow along with his slide deck here.

January 2022 Deep Dive

January 2022 Deep Dive

Grayscale GBTC And Bitcoin Price

One of the bigger topics we talked about with LeClair was Grayscale and the effect this market behemoth has on the bitcoin price.

January 2022 Deep Dive

As you can see in the chart above, GBTC inflows abruptly stopped in January 2021, one year before this report, and interestingly, very near the price of bitcoin at the time of this writing of $42,000.

Slide deck of February 2022 Deep Dive

swinging wildly. So, we examined just what was happening and gave our listeners some expectations for the rest of the year.

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SWIFT Alternatives, Gold And Russia

We ended the episode with some talk about the situation in Russia and Ukraine, as regards to the sanctions of the SWIFT network. The only viable alternative on the horizon is Bitcoin. The much discussed Russia/China alternative is in its infancy and still uses banks as nodes which are vulnerable to sanctions. Gold is not an option for quick international settlement, and will likely suffer price declines in this situation because Russia needs to access dollars, and can sell gold to do that.

The Russia/China interbank alternative is not an alternative banking or financial system, it is just a messaging protocol. It is in the same boat as a central bank digital currency (CBDC), it’s new but not revolutionary. It still has all the points of failure like corrupt institutions and rails of the past. Bitcoin, on the other hand, is fundamentally a new system, with a new monetary unit. It is the only thing at this time that fits the bill as an alternative to SWIFT and the decrepit fiat system.

This is a guest post by Ansel Lindner. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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