Bitcoin has fallen to ≈loss-making tech stocks
Previously, many people emphasized its "store of value" attribute. However, as illustrated by the chart below regarding Bitcoin's correlation this year.
When you trade Bitcoin, you are essentially trading Nasdaq (or Goldman Sachs' so-called non-profit tech stock portfolio). Fundamentally, both have a certain level of speculation, cyclicality, and are heavily favored by retail investors...
This also marks a subtle change: during the period from 2020 to 2024, Bitcoin's strongest correlation was with the 10-year breakeven inflation rate; and now, although people like to call it 'digital gold' — in certain cases it can indeed serve a similar hedging purpose — most of the time it is not the case.
Most of the time, you are actually just trading non-profit tech stocks. $BTC
