Bitcoin’s $82K Breakout Just Got REKT by the Fed! | Simply Originals

Nico Moran (0:00)

Breaking, Bitcoin just gave its highest daily close in nearly four months. Bitcoin surged nearly 20,000 cuck bucks in the last 20 days. The move added 390 billion to Bitcoin's market cap and liquidated 11.4 billion worth of leverage positions. This was the largest shorts liquidation cascade in the entire history of crypto. And would you look at that, strategy's Bitcoin portfolio is now up about 15 billion.

In the last 15 days, a thousand a day for Bitcoin is correlating to about a billion a day for Giga Chad. Maybe he saw this chart and knows Bitcoin's pathway to 800k could come sooner than many expect. Bitcoin and gold were ripping. Then just while I was writing this show, boom, we crashed below 80k and the Fed flip flopped. So what the f**k is happening? Well, we definitely have some pretty strong reasons why investors are running to the exits. The flip to hold just flopped to hike and inflation is running rampant. Mohamed says the global bond sell off likely not over yet. Well, you know what to do, Mohamed.

Mohamed El-Erian (1:15)

And as long as inflation expectations are stable, you can navigate.

SPEAKER_3 (1:21)

You better buy some Bitcoin, Mohamed.

Nico Moran (1:24)

Something else crazy is happening. The global currency war is accelerating, while some are dumping bonds like a bad habit. It appears Dicky Dollar Milkshake is in effect for others. And so is the debasement trade, despite the volatility. Massive show today. Stay until the finish and you'll understand why what Dave Smith just did to the fiat establishment, Bitcoin is about to do the same. And it could end with the most insane bull run of our lives and 800K Bitcoin. We will shake the bears off like please, we get a lot to get to.

SPEAKER_4 (2:04)

It's a long term problem is the issue that Treasury faces. They are currently printing 2 trillion extra dollars and the Congressional Budget Office says that is rising, you know, infinite to 3.6 trillion in 10 years. And so if the government is printing that much money, it really, it's just, you know, kind of paper over the cracks to buy a couple billion here or there, really doesn't do anything. And I think this has really ignited a rally in things like Bitcoin and other hard assets like gold because it really highlights there isn't a real way out for these countries like the United States. Think about it, you know, the US is largest net debtor in the world. Like, how can it pump, quote, make markets in bonds and it's the one that has to be for selling of two trillion a year? And I think that's what's driving people into crypto. You can't print, there's 21 million bitcoins, you can't print more of them.

And so all of this, you know, really is highlighting a problem that's hard to see where it goes. And inflation is already 3.4% and that debases 90% of your purchasing power over your life. So if you have the choice to own something hard like Bitcoin or a US piece of paper money, you know, Bitcoin has historically gone up about 70% a year and paper money is debasing at 3.4% a year. And also it does highlight the fact that the economy is doing as well as it possibly could.

Unemployment rates 4.1%, which is full employment. Wage inflation is 3.4%. Everything is really, really strong.

You know, you have to wonder what's going to happen when something bad occurs in the economy. The deficit will spiral out of control. And we're only a year away from the US deficit going above where it was at the end of World War II. And think about that. With all that money, we defeated fascism. Like, what's the government printing the money for now?

Nico Moran (4:12)

Bitcoin reached 82k after Fed Governor Waller said he may support holding rates at the next FOMC meeting. $415 million in shorts got annihilated. It was on like Donkey Kong. But then, the Fed flip flopped this morning. Flopped like LeBron when he won that Oscar. Because at 8.30am, the jobs report drops and boom, 162,000 new jobs. Listen to how insane this is. Economists expected 55,000. We got 162,000. That's nearly 3x expectations. Last month was 21,000. So that's almost 8x last month. Private payrolls, 127,000 vs. 45,000 expected. Unemployment held at 4.1%.

Even the U6 improved to 7.7 from 7.9. Wages hit 0.3% for the month right on target. 3.1% year over year, a touch hotter than the 3% they wanted. Good news, right? It's fine. Everything's great. Except in this clown economy, good news is bad news. Because a strong jobs report removes the Fed's biggest excuse not to hike. Going into today, September hike odds were sitting around 50%.