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:

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

Posted Using LeoFinance