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The Many Reasons British Politician Godfrey Bloom Is Buying His First Bitcoin

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This week, former British politician, author, and more, Godfrey Bloom revealed his plan to buy his first Bitcoin. But why? Here are the three primary reasons that the former parliament member would consider investing in the leading cryptocurrency by market cap.

Who Is Godfrey Bloom, And Why Did He Decide To Buy Bitcoin?

Godfrey Bloom was born in 1949 in London, England. From an early military career, Bloom turned his expertise toward economics. Later on, he became the director of an investment firm, before getting into politics.

He also served as a member of the European Parliament for Yorkshire and the Humber. The outspoken political was famously booted from the Mansion House in 2009 for “heckling” Lord Turner for giving his staff sizable bonuses after the regulatory failure of 2008 and resulting economic fallout.

RELATED READING | OWNING BITCOIN “IS A MUST” SAYS PRICE OF TOMORROW AUTHOR, JEFF BOOTH

Bloom also wrote a book that Bitcoin fans will love, entitled The Magic of Banking: The Coming Collapse. In the book, he calls attention to the coming collapse in not only banks but fiat currencies also – due to decades of poorly managed monetary policy. Also between the book’s two covers, Bloom discusses what he reveals to be the only form of hard money: gold.

Is Bloom now considering Bitcoin as another form of hard money, ready to face a failing fiat system?

BTCUSD Weekly Godfrey Bloom Buys Bitcoin Over $10,000 | Source: TradingView

Three Reasons This Former Parliament Member Is Putting Capital Into Crypto

Godfrey Bloom, one of the smartest men in politics and finance, is buying Bitcoin at over $10,000. The fact that someone of these credentials alongside the likes of Paul Tudor Jones and MicroStrategy CEO Michael Saylor, speaks volumes about what the cryptocurrency’s potential could be.

Bloom, an enormous advocate of gold, could be considering Bitcoin as a digital form of the precious metal with an even more scarce supply due to its hard-capped code.

He also may be leveraging Bitcoin as a hedge against inflation, if he believes in total failure in the fiat-based system that the entire global economy is currently built on.

RELATED READING | HOW THE DOLLAR’S FALL FROM THE TOP COULD FUEL THE FUTURE OF BITCOIN

Bloom may be looking at Bitcoin as an insurance policy against uncertainty. The technology is new, compared to the rest of finance, but from new technologies comes major transformations. Bitcoin’s potential use cases aren’t fully realized and will take time to fully develop.

Bloom likely believes that there’s at least some chance that Bitcoin could blossom into an important piece of any smart investor’s portfolio. Bloom himself holds a portfolio of 65% gold, 8% silver, and the rest in real estate. And soon, according to Bloom himself, Bitcoin.

Bloom plans to confer with crypto experts over Twitter, the platform where he revealed the news, to learn more. Despite his age, he’s likely to take just fine to the technology unlike other goldbugs like Peter Schiff, as Bloom operates his own successful Youtube Channel as well.





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Bitcoin may lose $30K price level if stocks tank, analysts warn

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The ghost of stock market crash is back again to haunt Bitcoin (BTC).

It happened last in March 2020. Back then, the prospect of the fast-spreading coronavirus pandemic led to lockdowns across developed and emerging economies. In turn, global stocks crashed in tandem, and Bitcoin lost half of its value in just two days.

Meanwhile, the U.S .dollar index, or DXY, which represents the greenback’s strength against a basket of top foreign currencies, has now climbed by 8.78% to 102.992, its highest level since January 2017.

The huge inverse correlation showed that investors dumped their stocks and Bitcoin holdings and sought safety in what they thought was a better haven: the greenback. 

More than a year later, Bitcoin and stock markets again wrestle with a similar bearish sentiment, this time led by a renewed demand for the U.S. dollar following the Federal Reserve’s hawkish tone.

Namely, the U.S. central bank announced Wednesday it will start hiking its benchmark interest rates by the end of 2023, a year earlier than planned.

Lower interest rates helped to pull Bitcoin and the U.S. stock market out of their bearish slumber. The benchmark cryptocurrency jumped from $3,858 in March 2020 to almost $65,000 in April 2021 as the Fed pushed lending rates to the 0%-0.25% range.

Meanwhile, the S&P 500 index rose more than 95% to 4,257.16 from its mid-March 2020 peak. Dow Jones and Nasdaq rallied similarly, as shown in the chart below.

Bitcoin, Nasdaq Composite, S&P 500, and Dow Jones rose in sync after March 2020 crash. Source: TradingView.com

And this is what happened after the Federal Reserve’s rate-hike announcement on Wednesday…

Bitcoin and the US stock market plunged after the Fed’s rate hike update. Source: TradingView.com

Meanwhile, the U.S. dollar index jumped to its two-month high, hinting at a renewed appetite for the greenback in global markets.

U.S. dollar index jumped up to 2.06% after rate hike announcement. Source: TradingView.com

Popular on-chain analyst Willy Woo said on Friday that a stock market crash coupled with a rising dollar could increase Bitcoin’s bearish outlook. 

“Some downside risk if stonks tank, a lot of rallying in the DXY (USD strength) which is typical of money moving to safety,” he explained. 

Michael Burry, the head of Scion Asset Management, also sounded the alarm on an imminent Bitcoin and stock market crash, adding that when crypto markets fall from trillions, or when meme stocks fall from billions, the Main Street losses will approach the size of countries.

“The problem with crypto, as in most things, is the leverage,” he tweeted. “If you don’t know how much leverage is in crypto, you don’t know anything about crypto.”

Burry deleted his tweets later.

Some bullish hopes

Away from the price action, Bitcoin’s adoption continues to grow, an upside catalyst that was missing during the March 2020 crash.

On Friday, CNBC reported that Goldman Sachs has started trading Bitcoin Futures with Galaxy Digital, a crypto merchant bank headed by former hedge fund tycoon Mike Novogratz. The financial news service claimed that Goldman’s call to hire Galaxy as its liquidity provider came in response to increasing pressure from its wealthy clients.

Related: Hawkish Fed comments push Bitcoin price and stocks lower again

Damien Vanderwilt, co-president of Galaxy Digital, added that the mainstream adoption would help Bitcoin lower its infamous price volatility, paving the way for institutional players to join the crypto bandwagon. Excerpts from his interview with CNBC:

“Once one bank is out there doing this, the other banks will have [fear of missing out] and they’ll get on-boarded because their clients have been asking for it.”

Earlier, other major financial and banking services, including Morgan Stanley, PayPal, and Bank of New York Mellon, also launched crypto-enabled services for their clients.

Is Bitcoin in a bear market? 

Referring to the question “are we in a bear market?” Woo said that Bitcoin adoption continues to look healthy despite the recent price drop. The analyst cited on-chain indicators to show an increasing user growth and capital injection in the Bitcoin market.

He also noted that the recent Bitcoin sell-off merely transported BTC from weak hands to strong hands. 

7-day moving average of coins moving between strong and weak hands. Source: Willy Woo

Woo reminded:

“My only concern for downside risk is if we get a major correction in equities which will pull BTC price downwards no matter what the on-chain fundamentals may suggest. Noticing USD strength on the DXY, which suggest some investors moving to safety in the USD.”