To The Moon

I have been eyeing cryptocurrencies for a while but have not had the guts to get my feet wet in view of the volatility. 

The critical question is whether the 50k is achievable THIS WEEK.

Cryptocurrencies were first thought to be a great hedge against traditional assets. However, they have been hit by regulatory or rather, the lack of regulatory concerns. More importantly, in the recent stock downturn, crypto has fell along. The Russia-Ukraine war added uncertainty and sell off like the rest of the stock market. These raise concerns of itsutility as a hedge.

I believe part of the rise is Biden's executiveorder for it to be regulated. In other words, if it can be regulated, then it can be accepted as mainstream and likely here to stay. It is officially recognised as a form of digital asset; a medium of exchange that has real stored value much like the currencies that we are familiar with. You may also see it as 'alternative currency' in that aspect.

As mentioned previously, the observation by the general market is that it mirrors the stock market. They seem to be correlated for some reason. The confidence of investors have returned in spite of the rate hikes and the ongoing war. One way of explaining this confidence in spite of the rate hikes is perhaps the hope that the Fed is still in control of the situation as rate hikes remain an option to combat inflation. However, whether these rate hikes are sufficient or the Fed is indeed behind the curve, only time will confirm.

Using the general observation of its correlation with the general stock market, I do NOT expect it to hit 50k this week (more likely tobe achievable in a longer time period like end of this year). If unemployment remains down or decreased, the fear of inflation and even stagflation will return. The stock market will fall in response to fear, bringing bitcoin along....