Bitcoin is again strongly correlated to gold, currently seeing record high correlations
Ever since the pandemic really started back in February/March, stocks and bitcoin had been trading pretty much in lockstep.
The correlations between stocks and bitcoin were at record highs, causing some to question the store of value narrative surround bitcoin.
More about that can be seen here btw:
Well we are currently starting to see those correlations between stocks and bitcoin break down.
As I type, stocks are up significantly while bitcoin gold and silver are all down significantly.
This shouldn't be that surprising to those of you that have been around bitcoin for some time, but even then, the positive correlation between bitcoin and gold is actually at an all time high.
Check it out:
As you can see, the bitcoin/gold correlation 1 month correlation is at an all time high.
Buy Bitcoin Gold and Silver when the money printers go brrrrr
This again gives credence to the store of value narrative of bitcoin and the idea that it should do well when central banks are printing money.
Speaking of which, that is likely a big part of the reason that bitcoin gold and silver are all down significantly today.
A week ago it looked like we would have a new stimulus bill approved by the end of last week.
Not only did we not get a new stimulus bill passed, but it sounds like both sides are still far apart, meaning we may not get one this week either.
I imagine at some point they will come together and pass something that the economy and American people badly need, but it may not be for another couple of weeks.
Which is not what the markets (bitcoin gold and silver) wanted to see.
There is a lot of damage done to the economy that will not be remedied any time soon which means we are still likely very much in an easy money environment and will be for some time.
For that reason, big dips in bitcoin gold and silver are likely buying opportunities as we go forward.
Stay informed my friends.