A Tale of Two Markets
May 26, 2023
• 9
Min Read
AI Skewing the Picture
Previous observations highlighted how the decline in crypto prices signaled a temporary liquidity peak, potentially tied to the impending debt ceiling deal. Correlations between BTC, gold, and equities illustrated BTC's sensitivity to liquidity changes. As anticipated, BTC/Gold and BTC/equities (excluding AI-related names) correlations are now strengthening, with gold and equities tracking BTC's lead.
Over the past few weeks, our discussions have centered around an observed shift in market dynamics, seemingly prompted by the ongoing debt ceiling standoff and the p...