Just another bubble? Bitcoin price tops follow Chinese debt cycles, new research shows

New research suggests that Bitcoin (BTC), although it may be at new all-time highs may simply be another bubble.

Material Scientist, an analytics expert, revealed a theory that could rile Bitcoin bulls. It seems there is a strong correlation between Bitcoin prices and Chinese debt cycles.

Doubting the power of Bitcoin halvings

Expectations are high for another high-water mark in the BTC/USD market, as it reached its highest level since April 2021.

Material Scientist examines the history of Bitcoin and shows that Bitcoins previous tops coincided with Chinese debt cycle tops.

As seen in April this year versus today, the ebb-and-flow also indicates a cooling down in Bitcoin. The analyst believes that this could mean that Bitcoin behaves as any other asset, but also that the supply squeeze that follows each halving of Bitcoin is irrelevant.

Ray Dalio is a well-known investor who channeled his ideas to him. He is also known for his research on Chinese economic behavior.

“I believe Dalio is right that debt cycles create bubbles. He said it in his Twitter comments.

“So, what if BTC halving is BS? Its not just about Chinese debt cycles.

According to the halving-based narrative, Bitcoin should be valued against unlimited assets due to its mathematically engineered supply drop every four years. These increases should be a factor of at least ten and can clearly be seen in tools like the stock-toflow family of Bitcoin price model models.

Despite Chinas debt and debt being in focus due to the Evergrande scandal and before thanks to coronavirus, the reactions to the debt cycle concept were positive.

One respondent even mentioned that Bitcoin whales often sell their holdings following each peak in Chinas debt cycle. April 2021 was no exception.

The odds of BTC price action rebounding are much better now that there is a low in progress.

Bitcoin liquid index vs. Chinese debt cycle data vs. BTC/USD chart (excerpt). Source: Material Scientist/Twitter

The Trojan horse of Bitcoin

Cointelegraph reported that Dalio has been making headlines recently for his position on Bitcoin.

Related: “Best Bear Market Ever” — 5 Things to Watch in Bitcoin This Week

He warned that regulators could still “kill it” with unfavorable policies — something similar to the rejection of its most prominent proponents.

Saifedean Ammous (author of The Bitcoin Standard), is one of them. He argues that Bitcoin, as the most difficult money ever created, will be an unavoidable buy for governments. However, its non-corruptible properties force them to give up their control over money.

Alex Gladstein, the chief strategy officer at the Human Rights Foundation, discussed this week the idea of Bitcoin as a Trojan horse for freedom in relation to government monopolies.

https://cointelegraph.com/news/just-another-bubble-bitcoin-price-tops-follow-chinese-debt-cycles-new-research-shows