Relative to other assets, Bitcoin is fairly priced: but there are opportunities

Bitcoin correlations report, December 2023

Bitcoin is experiencing a correction, a bump in the road. But looking at 2023 there is no denying that BTC is in a year of recovery. That being said it isn't the only one.

The stock market itself is up this year. And there are common macro drivers pushing everything in the same direction. 

So here is the question: not in absolute, but relatively speaking, is Bitcoin fairly priced right now?

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Relative to other assets, Bitcoin is fairly priced: but there are opportunities

The takeaway

Relative to the NASDAQ, Bitcoin is fairly priced. A little bit below the average, but very much in the normal range. 

Even though BTC and the stock market have completely decoupled when it comes to the daily price fluctuations, they are still both driven by similar forces. And if you are going to make macro bets, those forces driving the trend are more important than the traders reactions to the news each day.

Now while Bitcoin is where it should be in the macro picture, there are opportunities downstream.

In particular the Bitcoin miners are starting to look cheap relative to their typical relationship to BTC. But if the ETF narrative continues to dominate they might end up getting even cheaper. 

Regardless, this is the place to look out for opportunities.

Bitcoin's price relative to the stock market