Australian dollar firms above 77 cents as Bitcoin goes nuts

See the latest Australian dollar analysis here:

Elon Musk may have just saved Bitcoin

You can’t keep the crypto craze down! After doubling in little over a month before the end of the year, Bitcoin has gapped 10% higher to be well above the $33000USD per coin level this morning

Definitely NOT a bubble – this is the monthly chart:

Meanwhile, gold is being pulled along, gapping above the $1900USD per ounce level in Asian trade while the Australian dollar is also seeing strength despite some speculation at The Fish and Chips broadsheet that a federal election may be called later in the year, hovering over the 77 handle going into the afternoon session:

Australian stocks are well bid as traders return to their desks, with the ASX200 now up over 1%, hitting the 6666 point level (ohh, scary) with commodity stocks leading the charge. The latest solid manufacturing PMI may have helped, with optimism baked in despite the latest COVID breakout in the Eastern states.

The PBOC put out their latest fix on the Yuan, once more firming it against the USD, with an onshore range of 6.5408, while offshore trading has cracked below the 6.50 level proper to a new yearly low:

 

 

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Comments

  1. Hernando de Soto

    Perhaps try not to price everything in USD – it may be that the USD is getting worth less and less with all the money-printing?

      • Donald Rumsfeld

        Nah – its not just Bitcoin – its pretty much everything at this stage. China has just unleashed its digital yuan on the the developing world and pretty much everyone buys stuff from China and has jumped straight onboard as there are ZERO bank accounts required. Sure the US is important for inter-state trade – but when you have just wrapped up the entire developing and half the emerging world in one fell swoop things look pretty grim for the USD.

        Beggars belief that news outlets in Australia, including this website, are so hell bent on demonizing China – rightly or wrongly – that they are steadfastly ignoring some of the most important developments in modern history.

        Really is crazy behaviour.

        • No bank accounts? How does that work?
          As far as I know there are only a few select people (CCP members?) in a handful of select cities that have access to the digital renminbi so far.

          • Donald Rumsfeld

            It was initially trialed last year across something like 200 cities and towns in mainland China and several Asian countries as well.

            It is THE REASON Jack – Ma was pulled aside as his position threatened the banking system in China, the Digital Yuan is set to replace AliPay and WeChat competition. Is going live as we speak.

            ..

          • Because they call them Electronic currency accounts, not bank accounts, but practically no difference is my guess.

          • agree Alipay etc will be replaced… also the data a full Ⓔ curency will offer the CCP plus ability to control Chinese people & others internationally will be phenomenal

            Yes, they can call them what they like, ultimately it gives the CCP full control over anyone who uses their digital currency as they will know everything you spend it on, Chinese gambling, video games maybe even prostitution will be hit hard! I wonder if any of the current Bitcoin rise is driven by Chinese looking to move their money offshore before China implements electronic money across the board, they already have the infrastructure thanks to AliPay etc

        • Jumping jack flash

          The USD is only important for buying oil.
          Since everyone buys oil, everyone already has piles of USD available, and all the systems set up to be able to trade in them, and it is convenient to use them to buy everything else.
          There is no reason why Digital Yuan or anything else including bottlecaps can’t be used for buying everything else, except oil.
          You would need to buy a pile of whatever currency you wanted to use to buy the stuff, and you and the seller would need to be set up to trade in that currency.

          You would also need your pile of USD to buy oil with.

          • Donald Rumsfeld

            Actually a huge proportion of global trade is conducted in USD – not JUST oil. That is very quickly changing though – hence the collapsing USD.

            the CIPPS network, Digital Yuan, Shanghai Bourse and several other factors are at play.

    • Jumping jack flash

      If only they used actual money printing.
      These days they use debt. It is incredibly convenient for many reasons, and doesn’t turn them into Zimbabwe overnight.

  2. happy valleyMEMBER

    ” … hitting the 6666 point level (ohh, scary)”

    Scary – not even remotely yet. Try 8,000+ by the end of 2021 for starters?

  3. It may well yet spike to $40k or even $64k:

    https://twitter.com/davidbelle_/status/1345439683065606146

    On the other hand Ponzi’s require more oxygen the larger they become and they printed nearly $1billion Tether from the 23rd of December until today…. because Insto’s love coming in over Christmas and public holidays to buy BTC from Bitfinex.

    Remember Tether backstops BTC, and BTC backstops Tether:

    https://twitter.com/ExkrementKoin/status/1345958000775860225

  4. Unless the US regulates Bitcoins, I just see it going to the heavens. I see it breaking $100,000 . Its obviously a bubble but I also think the Chinese are Laundering money in/out of America. They are basically laughing at America at this point and saying, ” We dont care about your sanctions. We just convert our money to bitcoins and go around you. “.

    In my books, its clearly a Currency War.

    China’s crapping all over America and America doesnt seem to be able to retaliate. America seems very confused at the moment.

    I wonder how much of that money is being used to Bribe / Buy Influence politically in America.

    • Laundering money doesn’t move the price though, it’s a buy and then sell for a net zero. People need to hold to push the price up. Supply and demand and all that.

    • My suspicion is some of the hedge funds are pumping and dumping. Realistically it’s not a huge market.

  5. 2017 was a bubble for BTC as well. 2013 too. And yet all the time it keeps getting higher. Market Cap now over 500 Billion. I think there may be something that you MB boys are missing. Maybe you should think about it for awhile.