China's Stimulus Is Not Going To Plan

The other day we talked about China releasing what was a major stimulus plan in order to rebirth their economy. Being that China is the worlds second largest economy and being that there's really nothing going on that should be having an economy struggle begs the question why such a power house of a country felt the need to release such a powerful stimulus plan or at least what should have been a powerful one.

This Stimulus plan mainly focused on loans and getting more money into the hands of spenders to get them to spend again. This spending instead of savings should have boosted the economy as production and flow of funds around the country would have cycled up. But it's pretty clear that constant aggressive nature towards Taiwan is putting a lot of people within their own country on edge which is causing them to save more and spend less.

However as of today the hopes of more stimulus and more drive from China seems to have disappeared now.

When we also start to compare Russia's Ruble and Chinas currency to the USD we can see that they are rapidly losing value which is really starting to bring into question the legitimacy of the BRICS system and if these countries are actully a financial risk to the USD value. So far it's looking like that's not the case as one is in a major war which they ultimately feels like they are losing more than winning in terms of damage to their economy and the other a economy that's been propped up on fake real-estate and companies for so long that it's trying to stem off a massive recession that has been looming there for a good two years now.

The question now comes should we bother looking at a possible rally for Bitcoin this year with everything going on?

Many including myself are now putting off a possible rally all the way into 2025 before it starts. While I still feel that Bitcoin for the most part will continue to hold a decent value of $50,000+ and not have a dramatic fall as it's had in the past the chance of some bull market mega rally continue to be on the lips of many but the data behind it is showing that there's really no real case for it yet. There's just far too much negative pressure and sentiment around the world right now putting many on edge.

The biggest thing that Bitcoin currently has going for it is if people really do look at it as a store of value. While I agree it very well can be the major issue is the massive feed to more that store of value which makes smaller investors and regular every day people in a tight spot to be able to move those funds or if it would be even worth to move them because of those fees.

Now bitcoins fees are not crazy high like they have been in the past but they are high enough that if you're making a transaction under $30 it can be a pretty big hit.

At the time of writing this bitcoins fees are about $0.80 - $1.20 which is far off from the ATH which spiked it to around $30 or so and in some weird cases over $100 when we saw ordinals added in. Not sure we hear about those all that much anymore!

Posted Using InLeo Alpha