Bitcoin is now more correlated to US stocks than ever before...

On Friday, bitcoin reached news highs in terms of correlation to the S&P 500.

Check it out:

(Source: https://www.coindesk.com/bitcoin-reaches-record-high-correlation-to-sp-500)

And here we thought we needed more people buying and using bitcoin for it's price to go up...

All we really needed to happen is for the S&P 500 to go up and bitcoin would go up as well!

Bitcoin's correlation with gold is weakening...

While bitcoin's correlation with US stocks is strengthening, it's correlation with gold is weakening.

As bitcoin was making new highs in terms of its correlation with the S&P, it's correlation with gold was dropping like a rock...

Check it out:

(Source: https://cointelegraph.com/news/bitcoins-correlation-with-gold-is-weakening-says-new-kraken-report)

Looking at the most recent readings, it now looks like bitcoin is negatively correlated with gold.

Say what?

Yep, according to recent price action, bitcoin is positively correlated with stocks and negatively correlated with gold.

So much for a store of value am I right?!

Well, not exactly.

I think this new found correlation is most likely a short term event.

Also, I would argue that being more correlated with stocks vs. gold is probably a good thing in the medium term.

We have massive amounts of liquidity being pumped into global markets and we are just about to get even more.

See here:

In that scenario I see stocks doing very well.

And if stocks do well we can surmise by recent price action that bitcoin will do well as well...

Bring on the stimulus!

Stay informed my friends.

-Doc