Bitcoin is in sync with macro

Bitcoin correlations report, April 2024

Investing in Bitcoin is making a macro bet. 

A bet that the debasement of fiat currencies is bound to accelerate. A bet that central banks liquidity is driving most financial assets. A bet that Bitcoin with its combination of programmatic scarcity, decentralized nature and potential for global adoption will benefit the most from this.

Now that doesn’t mean Bitcoin is always in sync with other macro assets. But right now there is no doubt it is in sync.

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P.S. we have just released a new dashboard on the Bitcoin miners. The purpose of this dashboard is to track if the Bitcoin miners stocks are over priced or under priced relative to Bitcoin. Paid subscribers can check it out here.

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Bitcoin is in sync with macro

The takeaway

Bitcoin and other macro assets are now strongly coupled. And they are all victim of a slowdown caused by some uncertainty around where liquidity is going in the short term.

Crypto assets are themselves following Bitcoin very closely at the exception of the miners. But now that we are moving away from the halving we also expect the miners to catch up.

At this point Bitcoin is neither over priced nor under priced relative to other major assets. But that’s a good place to be when you are waiting for the macro tailwind to push you towards new highs.

Everyone is in line, except the miners