They say "there's nothing more permanent than a temporary government policy."
Unless, of course, that policy applies to banks.
The Fed has performed its nebulous "stress tests" on the world's biggest banks and deemed them solvent and able to survive a recession. As such, those banks no longer have restrictions on their stock buybacks or dividend payments. In other words, back to business as usual. Business as usual is bullish for bitcoin, so I'm fine with this shit policy even if it is destructive and wrong.
Funny how the Fed performs the solvency tests for the banks that it capitalized with fake money. They literally said, "You're insolvent. Stop buying back your stock until we give you enough money to be solvent. Here's some money. Wow. You're solvent. Ok, you can buy back your own stock now."
Does this mean you should possibly invest in the banks? Possibly, I suppose. Now that they can do whatever they want again, they're sure to be profitable. And we can definitely expect the economic numbers for the next quarter to come out looking great. That's because media and finance compare this quarter's numbers to last quarter's. Since last quarter was COVID, complete shit would look good. But they market it as 30% rise quarter over quarter is biggest quarter over quarter rise in history!" Not mentioning that the market was so low that the "biggest rise in history" still puts you at an overall lower low.
This doesn't mean bitcoin will rise immediately. Until further notice, we are still in a bearish accumulation pattern on crypto charts. That is, bitcoin could still lead the market down as BTC moves into the $20ks. My advice is to continue to prepare for a move down even if you are hoping for a move up.
I still wouldn't short bitcoin/crypto in general and I'd stay away from leverage. If the narrative changes on bitcoin quickly, it will likely be a short squeeze (people taking too many shorts and whales jacking the BTC price up to take that money). Barring that, the march back to $50-60k will be slowfast.
Of course the market is alive and things change. Anyone who says they can predict the future is lying to you. I take in information as it comes, and my thoughts are subject to change based on that new info. Maybe ether leads the market forward after its update in about a month. Who knows? Stay vigilant.
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