Bitcoin rallies above $49K on announcement of rate hikes in 2022. Could the Omicron variant be GOOD NEWS!

In January last year Bitcoin was predicted to hit $100000 USD per coin. However the new COVID variant, along with China’s biggest house-building firm going bust, (Evergrand), saw traditional markets pull back. Bitcoin’s leap to 70k fell back to 42k after the bad news cycles. 

The Fed announcement means that no rate hikes are planned in the States until at least March, giving a likely run-up in prices over January and February. 

Those who are still wondering if this is a good time to get involved in a Bitcoin investment would have seen the damage done to our Euro and GBP by continual ‘money printing’, causing massive spikes in inflation. The most recent numbers are confirmed at over 6%. These numbers have not been seen since the 1980’s when it peaked at over 12%.

This is taxation through the back door! The way the Governments control our finances through uncontrollable spending and ‘money printing’ is the very reason Bitcoin was invented. No asset class has come close to the returns year-on-year that Bitcoin has achieved. Since its launch in 2011 it has seen a 4 million percent gain since. There is an average year-on-year return of 150% since 2013. People buying at the lower prices have done brilliantly well and made life-changing wealth. 2021 saw the API return at 179%. 

As explained over the previous months, Bitcoin has a limited supply of just 21 million coins available and 90% have already gone, hence the price. Once we get the next halving event in 2024 we will see an even more accelerated rise. Compare this to Euros etc where unlimited printing devalues the currency over time. Once we couple this with inevitable inflation it is not difficult to understand why adoption and interest is so huge. 

My own view on the current state of the crypto markets are still bullish. We are likely to see a downtrend once the FED does raise rates. This will affect normal stock market prices and other assets in the short term. However, much of these adjustments will be priced in over the next couple of months. 

The big story will be the likely eradication of the COVID Delta variant for the less dangerous Omicron variant. South Africa has had remarkably few hospitalizations and deaths since it replaced the Delta variant. This looks good for the global economies to return to some kind of normality by the spring. If this plays out, I expect huge gains in Crypto prices from April until the Autumn of 2022.  

To better understand the Crypto market and the opportunity it offers for financial independence, email me for my free eBook at andrewhurrell2000@yahoo.com  

Be aware that all investments carry risk and prices can go up as well as down.