"Bitcoin is Gold" narrative is dead.
First I would like to say a few words for our fellow Ukrainians going through a war as we speak. Hopefully, this will settle with the fewest casualties possible. I would also sympathize to many Russians feeling they will be negatively associated and impacted by the ongoing situation even if they probably would have wished anything but what is currently happening.
I will not develop anything else concerning this conflict.
My thought process and the data has shown for a while that Bitcoin's narrative as a "safe asset" has been dead for a while. Correction since COVID where it first showed how correlated it was to market risk has just amplified.
With the current market krach and the downtrend due to geopolitical or financial (interest rates, inflation...) reasons; Bitcoin has shown what it truly is: A risk on asset. Meaning it has more to do with NASDAQ than with gold.
As you will see in the 2 charts below. Gold reacted in a much different way than Bitcoin.
This has many mentioned could be because Bitcoin's reserve narrative might be on a longer time frame and therefore there might be short-term volatility before it truly achieves this goal.
Time will tell I guess.
Bitcoin/USD Price Chart
GOLD/USD Price Chart
Treat Bitcoin as NASDAQ at least in the short term. Over the long term, the reserve curreny narrative might be true but it is still too early to tell.
Stay safe out there,
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