BRICS Using.... BITCOIN ? 😨

4 ก.ย. 2023

Hi Traders, Investors and Speculators of Charts📈📉


Bitcoin is now political. (if it wasn't already before, it definitively is now).

In a recent development, official news leaked that that BRICS nations may look at using BTC to undermine the Dollar as a reserve currency. At the same time, many nations have drastically reduced their USD exposure.

China's holdings of US treasury bonds decreased significantly to $835.4 billion in June 2023, marking a substantial drop of approximately $103.4 billion within a year. (Despite this reduction, China remains one of the largest creditors to the United States, with Japan holding the top position at $1.105 trillion.)

Additionally, the BRICS nations, a group consisting of Brazil, Russia, India, China, and now Saudi Arabia, are exploring the idea of using Bitcoin as an alternative to the US Dollar for international trade and exports. This suggests a growing desire among these nations to reduce their reliance on the US currency.

Saudi Arabia, a new member of BRICS, also decreased its holdings of US debt by $11.1 billion during the same period, now holding $108.1 billion. These moves by BRICS nations reflect their increasing opposition to the dominance of the US Dollar in the global economy.

Even though the bears have undoubtedly taken control of BTC short term, this is very provocative news that will definitely affect the Bitcoin price. The two main outcomes I see:

👉 Sellers drop the price lower to an entry point that is more acceptable for whale buyers in BRICS countries. BTC trades range for months.
👉 Considering USA holds most of the BTC supply by country, we see a price increase to make it harder / less affordable for BRICS countries to accumulate BTC. Lot's of volatility as BTC buyers vs sellers fight for macro dominance

Although, having been in this space for a while, I'm leaning more towards the first option considering that was what happened when El Salvador made similar claims.

As of March 8, 2023, Top Countries with BTC holdings are :

1) United States (805,810 BTC)
2) Russia (129,210 BTC)
3) Germany (108,150 BTC)
4) Switzerland (105,000 BTC)
5) Netherlands (88,400 BTC)
6) Canada (70,000 BTC)
7) United Kingdom (58,000 BTC)
8) Sweden (52,000 BTC)
9) Japan (42,000 BTC)
10) Australia (38,000 BTC)


Ziad Daoud, Chief Emerging Markets Economist for Bloomberg, suggests that Saudi Arabia's (a large oil nation) shift towards riskier assets could influence the Federal Reserve's stance on interest rates, both domestically and globally. This could potentially lead to higher US interest rates.




So where does this leaves you, as a Bitcoin trader / speculator? Not in a great place. With these new developments it may be harder than ever before to predict the direction of the price.
My recommendation is still the same since weeks ago.. Altcoins. There are MANY better trading setups within the altcoin market that have better risk/reward setups. I personally won't touch BTC for the moment.

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Incase you missed it, previous relevant updates here :
BRICS 2023 Summit outcomes :

Capitalizing on BRICS nations stocks:

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