Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
⭐ Merited by fillippone (2)
The fact is that Bitcoin has zero correlation with other asset classes.
Not a fact. Even @aantop recognizes the correlation:
There's other more mathematically sound ways of identifying increasing correlation but they are too cumbersome and boring to reproduce at the moment.
Trading bitcoin has low correlation to other asset classes and high volatility
Low, yes. None, no.
If bitcoin would have been a pure gambling tool, given the enormous swings during the last days we would have seen a great surge in bitcoin transactions and a subsequent rise in transaction fees. Ok, we observed a rise in both metrics, but nothing comparable to what would have happened if we had observed a "rush" to the exchanges to trade bitcoins.
Today's swings are due to more investors using different high leverage options that weren't available in 2017, thus there is no need to move huge amounts of coins around on-chain. BitMEX was around back then but not nearly as many people were using it as today. And now it has several competitors that weren't around back then, as well.
So, don't infer anything about bitcoin only looking at the price: the price is one of the many aspects of bitcoin, but there is much more to deal with than price.
Yes, I do agree with this. And its these fundamental aspects that give bitcoin its value, which I believe ultimately will hold, so long as we still have internet and electricity.