And just like that, Bitcoin is moving along with Gold again...
After months of being mostly correlated with stocks, bitcoin is back to being highly correlated to gold
What is bitcoin exactly?
The short answer, no one can really say!
What it is depends on when you ask it.
At times it behaves like a risk asset, other times it behaves like a store of value, and still other times it behaves like a quasi stable currency.
This is probably why every regulator in the United States has such a hard time defining what exactly bitcoin is.
More on that can be seen here btw:
https://hive.blog/hive-167922/@jrcornel/so-is-btc-money-or-property-or-something-else-entirely
Welcome back, we hardly knew you!
Anyways, after months and months of trading like a risk asset, being highly correlated to the S&P 500, bitcoin finally is starting to revert back to the mean...
What I mean by that is that bitcoin is finally started to trade more along with gold, similar to what it has done historically.
Check it out:
(Source: https://twitter.com/caprioleio/status/1287889191565762561)
As you can see, over the last several days bitcoin has mostly broken its correlation with the S&P 500 and is instead now moving right along with gold and silver.
This is similar to how bitcoin has traded for much of its 10 year plus history.
Though, I should mention that technically bitcoin hasn't really been highly correlated with anything when looking at its entire trading history, but it has been the most correlated to gold over that time.
Bitcoin, gold, or neither?
In other news, some economists are not sure which they should be hating on more at this point:
(Source: https://twitter.com/zerohedge/status/1287873350153326593)
This is as gold barrels towards all time highs and bitcoin heads towards year to date and one year highs.
I don't feel bad for em one bit, they had their chance.
Instead of taking a flyer on a 1% allocation like many have suggested they scoffed, bashed, and hated.
Now it's our turn.
Eventually the altcoins will join the party as well.
Stay informed my friends.
-Doc
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Bitcoin will likely forever outperform gold at least in the foreseeable future...goldbugs hate it lol
Yep I agree. Though gold is a $9 trillion dollar market while bitcoin is $200 billion dollar market, which makes it much easier to move...
Have you seen the SILVER rocket ride going on since Sunday evening?
I have. I saw it hit $26 the other night. I am sitting on a nice pile I picked up back in 09-10 still, would love to see it go to $40 again.
Imagine what gold would be doing if bitcoin didn't exist!
Imagine what Bitcoin would be doing if Gold didn't exist.
Gold is a much bigger market than Bitcoin.
Yes, good point. Gold is roughly $9 trillion while bitcoin is roughly $200 billion.
Yes, much of this money would probably be in gold and silver, though bitcoin is only a $200 billion dollar market compared to gold's $9 trillion.
lets see if goldbugs will notice, that it will soon be easier to move 1 million $ in btc than 1 million $ in gold
I am sure they already do. They won't admit it but I am sure some gold bugs have dipped their toes in bitcoin. What makes gold attractive also makes bitcoin attractive.
It's more like: the $ is falling.
It's certainly quite interesting to see Gold and Silver trailing along Bitcoin's gains recently. I think those precious metals even went down a bit since then, while Bitcoin is still holding on strong! I wonder how those goldbugs think of this one, eh? 😁
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