Bitcoin Doesn’t Need The Money Printer Anymore. Why This Changes Everything! | Truth Block

Hurley (0:00)

Bitcoin has rocketed to $86,000 this morning, and last night it closed above the line that has called the bottom of almost every bear market in history. And it got there by climbing through every single thing that's supposed to stop it. The first rate hike in three years, real yields at the highest level of Bitcoin's entire life, a flat dollar, a dead crypto bill, and gold going sideways all year while Bitcoin runs right past it. For 15 years, the story was simple. Money gets cheap, Bitcoin goes up. Well, money just got a lot more expensive. So what's actually driving this thing now? What happens when the next wave of buyers is entire countries instead of hedge funds? And how high does this go now that Bitcoin has entered a completely new era of adoption? Today, we're going to walk through every serious price prediction on the table for the next few months and the next few years, all the way up to a million dollars a coin. And why that's still just the beginning. This is Truth Block. I'm Hurley.

Let's mine truth.

We all woke up this morning to a blinding green candle as Bitcoin finally broke through the 83k resistance. It looks like the new bull market has finally confirmed. Bitcoin closed the week on Sunday at 81k, above its 50-week moving average. That's the first weekly close above that line since November 9th of last year. Alex Thorne's team at Galaxy Research has the history on this. And in 11 of the last 13 bear markets, by the time Bitcoin closed a week over that line, the bottom was already in. And today it just kept going. Bitcoin pushed through 86k and took about $900 million of leveraged bets with it in 24 hours. At the July low, Bitcoin was down 55% from the October high. From that low, it's now up 50%.

And even after all that, it's still 32% below where it traded last October. And that last number is the one that matters the most today. Because something else quietly flipped this morning. The average Bitcoin ETF buyer went back above water the first time since January. But here's the most interesting part. Look at what Bitcoin climbed through to get here. Last Tuesday, the Clarity Act died on the Senate floor. Wednesday, the Fed raised rates for the first time in three years. The dollar has gone nowhere all quarter. And then there's this one. The 10-year real yield hit 2.68% this week, the highest it's ever been in Bitcoin's entire existence. The real yield is just what the government pays you above inflation to park money in treasuries and do nothing. It's the number every other investment on earth has to beat.

And right now, it's the highest hurdle Bitcoin has ever had to clear. Adam Livingston ran this over the weekend. Across the last 63 trading sessions, Bitcoin is up 18.5% while the real yield rose 38 basis points. And in every comparable stretch since 2020, when real yields moved that hard against it, Bitcoin's median return was negative 9%.

Every Bitcoiner you know has spent 15 years rooting for rate cuts because cheap money is when Bitcoin runs. So what's going on? Well, Jordy Visser went on Pomp's show on Friday and said we've got it all backwards.

Jordy Visser (2:46)

The enthusiasm came from, oh, debasement's coming.

And I will keep saying it for all of you people listening, you want rates to go higher and crypto to go higher because a true technology, a true innovation means it is not sensitive to that. This has been a big mistake that I have strong disagreement with the entire crypto community that Bitcoin is just liquidity. No, Bitcoin has been liquidity because there hasn't been innovation that has been used. When you get to the inflection point where innovation starts to be used, like with the iPhone, then that growth and innovation happens without the business cycle, without liquidity. So if you truly to be what everyone believes it's going to be, which I believe it is now, you actually need the true users of crypto to come into play.

Hurley (3:34)

Viscers read is that real adoption is taking over from liquidity, and I agree with them. But there's a second engine underneath this. Liquidity was always the demand side of the equation, and it was the only side that ever moved. So everybody built their model on it. The supply side never moved because it can't. We all know Bitcoin supply is hard capped at 21 million. So when a growing pool of buyers meets a supply that physically can't answer them, you stop getting the old chart. And the same argument turned up on CNBC on Friday from a completely different direction.