Bitcoin soared past $7,600 in early Sunday trading as news came out of a Saudi Arabian crackdown on the royal princes in a consolidation of power for the new king.
Among the 50 royals detained on Saturday evening was Prince Al-Waleed bin Talal, the billionaire investor behind Twitter, News Corp. and Citigroup.
The reverse coup by new leader Crown Prince Mohammed bin Salman brings his own team into the government through the launch of a new anti-corruption committee headed by the king.
The royal committee has detained most of the western-friendly princes who head up many of the government’s economic and military departments on charges of corruption and money laundering.
The committee’s formation was deemed necessary “due to the propensity of some people for abuse, putting their personal interest above public interest, and stealing public funds,” Crown Prince bin Salman’s office stated in the royal decree.
The dramatic moves by the king could mean that the Saudi Kingdom will turn its back on the US and get in bed with China for crude trade. This could be the beginning of the end for the petro-dollar as China pays for its energy with yuan as seen with its deal with Russia.
The Saturday night coup comes as crude and forex markets are closed, which is why I brought up the move in bitcoin, since it was the only financial instrument to show the reaction to the Saudi moves.
When futures open on Sunday night here in the US you will see a huge sell off in the dollar as well as cratering of crude prices. Stocks indices will be hit hard as well — with perhaps the need for intervention by Plunge Protection Team to bolster multiple triple-digit losses overnight.