Bitcoin Proving to Be a Macro Hedge…
March 6
Fair Value: $13,000-$15,0000
If ever the view that “crypto is a macro hedge” is to be put to the test, then 2020 would seem to be that time. Thanks to the fear and loathing created by the outbreak of the coronavirus, the ripple effects of COVID-19, as it’s known, is far reaching.
We are seeing pure havoc in fixed income markets (the yield on the U.S. Treasury 10-yr note at historic low); turmoil in equities (U.S. stocks down 12% from highs) and, to top it off, panic buying of toilet paper and hand sanitizer. Bitcoin (BTC) was created after the 2008 Great Recession and no event, until COVID-10, stressed both the real and financial world in this way.
In 2020, Bitcoin is proving to be the best hedge against current macro risks, up 27% , surpassing gold ,+10%, and even rallying long bonds,+23%. Even as there’s been a stampede into bonds and gold, Bitcoin has outperformed both. And this is all the more impressive considering that BTC was the best performing asset in 2019, up +92%.
Indeed, crypto as a whole is actually doing very well so far this year, with many digital assets outpacing Bitcoin: Chainlink +167%, Bitcoin SV +148%, Tezos +129% and even Ethereum +77%. In other words, despite the calamity and disruption in financial...Reports you may have missed
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We are writing to update our clients on the events of this past weekend and highlight a few data points we will be keeping an eye on moving forward into the next couple of weeks. On Friday, December 3rd, over $2 billion in long positions across the global crypto market were liquidated, nearly $850 million of which were from BTC futures.Almost $500 billion in total market value was wiped from the...
As shown below, Bitcoin's forward performance is far stronger when it is trading above its 200D moving average: >200D, 6M forward return +193% <200D, 6M forward return +10% You get the picture, Bitcoin is a network effect/network value asset, and also apparently aided by price momentum. _STRATEGY: BUY BITCOIN OR BUY CRYPTO EQUITIES_ The associated action for Rule #3 is simple. - go long _WHY IS THIS...
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