The Trouble with Floats

So about a week ago people were looking at the BTC chart like this:

And it was looking a bit ugly. We had a double top failure and a declining trendline at support. If that support failed, it was a straight shot to 7500.

And now that same chart a few days later:

We are up 20%!

How is that possible?

It is possible because BTC is a tiny, tiny, tiny asset on the world stage, but is starting to serve as a safe haven asset. So when we get crazy governments doing crazy things to their money, like say... China devaluing its currency by 10% unexpectedly... a small amount of buying in global terms creates a huge swing in BTC.

And BTC is the biggest of the cryptos.

We are accustomed to thinking about BTC as the 800-lb gorilla in the crypto world. And it is. But in the broader context, it's next to nothing.

CMC has the market cap for BTC as 214 billion USD currently. There are over 90 trillion USD of fiat money in the world. The float, the amount trading on markets, is next to nothing. AAPL could buy all of it several times over.

In most places, the governments controlling the money are actively screwing everyone who is holding that money. In some places, it's an outright monetary assault.

BTC is starting to find its purpose as an alternative non-fiat currency out there in the world. I think we are all in for a hell of a ride. It's not going to be instant, but in the end, crypto will prove out to be the superior money technology.