#Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt=""> is correlated to Gold, and Gold is correlated to stocks!
They all dumped today at the exact same time...
Time for a thread!
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They all dumped today at the exact same time...
Time for a thread!
According to data from Skew, the #Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt=""> and Gold correlation reached a new all-time high recently.
Interestingly, the correlation between #Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt=""> and stocks ALSO reached a new all-time high recently.
The correlation between #Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt=""> and Gold can be explained by looking at the historic amount of currency printing by central banks at the moment.
Both are hard assets that can& #39;t be inflated, so the correlation in these times makes sense.
Both are hard assets that can& #39;t be inflated, so the correlation in these times makes sense.
Stock prices are currently near all-time highs, and it is undeniable that the huge amount of currency getting printed by central banks has pushed stocks to these levels.
While unemployment levels are at record highs, the stock market should NOT be at record highs...
So, why are stocks correlated to Gold and why is Gold correlated to #Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt="">?
So, why are stocks correlated to Gold and why is Gold correlated to #Bitcoin
Even though these three asset classes are different, there is a clear correlation, and I think this is because of FEAR.
The media and governments have successfully put society into a state of fear of Covid-19.
When in fear, people behave irrationally and emotionally.
The media and governments have successfully put society into a state of fear of Covid-19.
When in fear, people behave irrationally and emotionally.
Also, people that hold Bitcoin usually hold some stocks, and people that hold Gold usually hold some stocks and maybe even Bitcoin.
If Gold dumps, then someone might have to cover their loss by selling some stock, etc.
If Gold dumps, then someone might have to cover their loss by selling some stock, etc.
But then again, the biggest reason is fear.
So, during times of global fear, we see a correlation between assets that should actually not be correlated at all.
But will this last?
So, during times of global fear, we see a correlation between assets that should actually not be correlated at all.
But will this last?
I think this correlation will only be temporary. Eventually, when the dollar collapses, there will be an awakening.
People will look for hard assets that can& #39;t collapse due to inflation.
The two best alternatives are precious metals and #Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt="">
People will look for hard assets that can& #39;t collapse due to inflation.
The two best alternatives are precious metals and #Bitcoin
When this dollar collapse happens, we will see EVERYTHING go up in price, but only some things will go up in VALUE.
I think Gold and #Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt=""> will completely skyrocket, while stocks and most other assets will be left behind.
At this stage #Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt=""> and gold will be correlated.
I think Gold and #Bitcoin
At this stage #Bitcoin
People call Bitcoin an economic experiment, but the biggest economic experiment today is the record low interest rates and a record amount of currency printing.
#Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt=""> might breakaway much sooner than we think, so I don& #39;t think we have to wait for the dollar to collapse.
#Bitcoin
Prepare for INSANE #Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt=""> prices in the next few years!
Make sure to follow me on Twitter for more #Bitcoin
https://abs.twimg.com/hashflags... draggable="false" alt=""> content!!!
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