Buying More SOL, Plus Another Election Trade Idea (Core Strategy Rebalance)
Small Cap Breakout a Positive Indicator for BTC
It is a common refrain among passive industry observers that BTC is strongly correlated with large-cap tech stocks, leading some to view BTC as a quasi-leveraged version of QQQ. However, we think this perspective is limiting. If you were to rely on QQQ as a barometer for crypto market conditions, you would experience several periods of underperformance over the course of a liquidity cycle.
For instance, in Q2 of this year, when the market was awash with bullish fervor around NVIDIA and AI, tech stocks soared on solid earnings and growth projections. Yet, BTC performed rather poorly during this period. This disparity arises because BTC trades according to shifts in monetary and fiscal conditions. Historically, these conditions have also affected large-cap tech stocks for extended periods, but they are not always in sync, such as during the earnings-driven rally of earlier this year.
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