View this email in your browser Hi everyone,

Hope that you're all in good health as we experience what looks like the largest deflationary event of our lifetime.



Hyper-inflation to follow deflation?



I tried withdrawing some cash this morning only to be told that a scheduled maintenance was underway. Of course, as panic spreads and people begin hoarding cash and toilet paper (apparently), the timing of this scheduled maintenance could not have been worse.



In any case, let's dive right into the bloodshed. Back in 2015, gold bug Mike Maloney stated that we're entering into a major roller-coaster ride. He said: "first, we'll see the threat of deflation, followed by a helicopter drop, followed by big inflation, followed by real deflation, and then followed by hyperinflation." At a time where Wall Street analysts are literally expecting the Fed to pump up the system with another QE round, this prophecy seems more likely now than ever before. Indeed, the global response in the face of this black swan is arguably more alarming than the event itself. Over the weekend, energy markets were hit with a deluge of bearish information. In Vienna on Friday, OPEC negotiations fell apart and Russia rejected an agreement on supply cuts to sustain oil prices. Just after, Saudi Arabia retaliated by cutting its export prices by over 10%, starting a what seems to be another merciless price war.



Futures markets reacted violently as oil sunk over 25% to around $33 a barrel. Needless to say, there will be significant collateral damage rippling through the world economy as a consequence, which comes at a time when there are huge concerns among oil producers due to already-weakened demand. The continued spread of the virus in the US, with cases now numbering over 500 with 22 deaths, the Fed's rate 50 basis-point rate cut was the biggest news of the week. Notably, one of the biggest winners was $100bn market cap biotech firm Gilead sciences, which climbed 15%. Naturally, it was driven by the fact that one of its drugs is being tested as a potential treatment. Aside from that, bleeding continues across the board and expectations of a relief rally are flying high - otherwise we could expect a tear-drop moment characterized by sheer desperation.

Battered, bruised, but still here.



Of course, the good news is that on the opposite side of every crisis is an opportunity, and as anyone with any sense knows, bitcoin presents that opportunity. From a technical standpoint, bitcoin has fallen off a cliff against Fiat, which makes sense given that the mantra "cash is king" holds stronger than ever as investment vehicles plunge.





However, I suspect that fiat stability is only temporary. Remember, it's not that fiat is strong against stocks, it's that dollars are falling less relative to everything else at the moment. Zooming out, bitcoin is technically touching the lower end of its 6-year-long trend line as it gets pummeled by overwhelming bearish sentiment and price-action.







As in our previous newsletter, bitcoin is going through what could arguably be described as the biggest test of its lifetime. The question is, once the money-hoarding period is over, where will investors park their money? Indeed, as we head in and out of what could be a major deflationary event, it would be imperative to observe cash flows, and I highly suspect bitcoin and precious metals will be major beneficiaries of such inflows.

Bitcoin on solid ground



As per prior mailouts, we mentioned the possibility of bitcoin coming down to fill its CME gap at $7.8k, which has now come to fruition. At the same time, weekend trading has now created a new enormous gap between $8,310 and $9,070, which should eventually get filled if the market continues to respect this gap pattern. That said, past behaviour does not guarantee future performance, and further consolidation could be in the works before a reversal given the widespread uncertainty.





BTC drop due to plus token scam?



One theory making the rounds is that Bitcoin might have sold off due to another plus token dump. In fact, various commentators citing blockchain data in the near-$3-billion pyramid scheme have stated that mixer-moves (money laundering) are suggestive of this fresh selling pressure. Ergo, the Twitter account responsible for tracking PlusToken's activities put the total funds at around 13,000 bitcoin. Essentially, the idea is that plustoken scammers are slamming the market with sell orders (on spot), which is equivalent to a giant whale unloading with every move up, according to Twitter analyst Kevin Svenson.





Chainalysis chart detailing Plus Token movements over time

Stock-to-flow multiple remains unchanged



As it happens, bitcoin is technically right on track for its pre-halving price-action, according to stock-to-flow. As the May event inches closer, all eyes are on the architect of this model, PlanB, who has reiterated that nothing has really changed in the face of these weekend price-movements in btc. Learn more about stock-to-flow

#bitcoin S2F chart adjusted for today's "crash" ... nothing really happened, btc still spot on S2F track pic.twitter.com/7bIaZpWgLB — PlanB (@100trillionUSD) March 8, 2020

Stock to flow chart - updated 09-03-2020



New York power plants mines bitcoin using excess energy



On a lighter, more positive note, a natural gas power plant in New York has decided to use its surplus energy to generate bitcoin and secure the network. In fact, some 7000-odd mining systems are producing up to 5.5 BTC (around $45,000 at the time of writing). The powerhouse characterized the imitative as a win for both the plant and the community, as in theory, it helps turn a profit while creating more jobs and tax revenue. While the long-term viability would need to be re-evaluated given bitcoin's upcoming halving and its monetary implications, I'm sure they won't have any energy issues moving forward. If this works, we might very well see other power-plants following suit to generate a novel revenue stream while helping to secure the bitcoin network.

In other news, bitcoin on-ramps have surged amidst widespread regulatory approval - full story below.



Ultimately, this downturn is will come and go like any other, and bitcoin will re-emerge even stronger by the end of it.

Hope that you're all in good health as we experience what looks like the largest deflationary event of our lifetime.I tried withdrawing some cash this morning only to be told that a scheduled maintenance was underway. Of course, as panic spreads and people begin hoarding cash and toilet paper (apparently), the timing of this scheduled maintenance could not have been worse.In any case, let's dive right into the bloodshed. Back in 2015, gold bug Mike Maloney stated that we're entering into a major roller-coaster ride. He said: "first, we'll see the threat of deflation, followed by a helicopter drop, followed by big inflation, followed by real deflation, and then followed by hyperinflation." At a time where Wall Street analysts are literally expecting the Fed to pump up the system with another QE round, this prophecy seems more likely now than ever before. Indeed, the global response in the face of this black swan is arguably more alarming than the event itself. Over the weekend, energy markets were hit with a deluge of bearish information. In Vienna on Friday, OPEC negotiations fell apart and Russia rejected an agreement on supply cuts to sustain oil prices. Just after, Saudi Arabia retaliated by cutting its export prices by over 10%, starting a what seems to be another merciless price war.Futures markets reacted violently as oil sunk over 25% to around $33 a barrel. Needless to say, there will be significant collateral damage rippling through the world economy as a consequence, which comes at a time when there are huge concerns among oil producers due to already-weakened demand. The continued spread of the virus in the US, with cases now numbering over 500 with 22 deaths, the Fed's rate 50 basis-point rate cut was the biggest news of the week. Notably, one of the biggest winners was $100bn market cap biotech firm Gilead sciences, which climbed 15%. Naturally, it was driven by the fact that one of its drugs is being tested as a potential treatment. Aside from that, bleeding continues across the board and expectations of a relief rally are flying high - otherwise we could expect a tear-drop moment characterized by sheer desperation.Of course, the good news is that on the opposite side of every crisis is an opportunity, and as anyone with any sense knows, bitcoin presents that opportunity. From a technical standpoint, bitcoin has fallen off a cliff against Fiat, which makes sense given that the mantra "cash is king" holds stronger than ever as investment vehicles plunge.However, I suspect that fiat stability is only temporary. Remember, it's not that fiat is strong against stocks, it's that dollars are falling less relative to everything else at the moment. Zooming out, bitcoin is technically touching the lower end of its 6-year-long trend line as it gets pummeled by overwhelming bearish sentiment and price-action.As in our previous newsletter, bitcoin is going through what could arguably be described as the biggest test of its lifetime. The question is, once the money-hoarding period is over, where will investors park their money? Indeed, as we head in and out of what could be a major deflationary event, it would be imperative to observe cash flows, and I highly suspect bitcoin and precious metals will be major beneficiaries of such inflows.As per prior mailouts, we mentioned the possibility of bitcoin coming down to fill its CME gap at $7.8k, which has now come to fruition. At the same time, weekend trading has now created a new enormous gap between $8,310 and $9,070, which should eventually get filled if the market continues to respect this gap pattern. That said, past behaviour does not guarantee future performance, and further consolidation could be in the works before a reversal given the widespread uncertainty.One theory making the rounds is that Bitcoin might have sold off due to another plus token dump. In fact, various commentators citing blockchain data in the near-$3-billion pyramid scheme have stated that mixer-moves (money laundering) are suggestive of this fresh selling pressure. Ergo, the Twitter account responsible for tracking PlusToken's activities put the total funds at around 13,000 bitcoin. Essentially, the idea is that plustoken scammers are slamming the market with sell orders (on spot), which is equivalent to a giant whale unloading with every move up, according to Twitter analyst Kevin Svenson.As it happens, bitcoin is technically right on track for its pre-halving price-action, according to stock-to-flow. As the May event inches closer, all eyes are on the architect of this model, PlanB, who has reiterated that nothing has really changed in the face of these weekend price-movements in btc. Learn more about stock-to-flow here On a lighter, more positive note, a natural gas power plant in New York has decided to use its surplus energy to generate bitcoin and secure the network. In fact, some 7000-odd mining systems are producing up to 5.5 BTC (around $45,000 at the time of writing). The powerhouse characterized the imitative as a win for both the plant and the community, as in theory, it helps turn a profit while creating more jobs and tax revenue. While the long-term viability would need to be re-evaluated given bitcoin's upcoming halving and its monetary implications, I'm sure they won't have any energy issues moving forward. If this works, we might very well see other power-plants following suit to generate a novel revenue stream while helping to secure the bitcoin network.Ultimately, this downturn is will come and go like any other, and bitcoin will re-emerge even stronger by the end of it.



p.s. Don't forget to wash your hands. #notlifeadvice





Christopher Attard

Founder of

Insight. Content. Consultancy.



Connect with me directly on:

Subscribe to this newsletter at

Check out our content and business

If you enjoy this free content, consider donating BTC:

3PUj7FrSW2MMHPaXGwC9AiYAPYBpy1JtPr Best regards,Founder of Chrisoncrypto Insight. Content. Consultancy.Connect with me directly on: Telegram Subscribe to this newsletter at chrisoncrypto.com Check out our content and business services suite here If you enjoy this free content, consider donating3PUj7FrSW2MMHPaXGwC9AiYAPYBpy1JtPr