BTC is correlated with the market - Doesn't that defeat the purpose of BTC?

Discussion in 'Crypto Assets' started by OptionsOptionsOptions, Jun 16, 2022.

  1. BTC is correlated with the market - Doesn't that defeat the purpose of BTC?
     
    murray t turtle likes this.
  2. Trader Curt

    Trader Curt

    Yeah, you can say it does....



    For now...
     
    johnarb likes this.
  3. %%
    Some whatOOO\
    but since SPY+ QQQ+ DIA are derivatives of real markets \really doesnt matter if bitcons goes to goose egg\zero..........................................
     

  4. the purpose of bitcoin is to take money from suckers.

    funding secured ! upload_2022-6-16_16-20-12.png
     
    murray t turtle likes this.
  5. Millionaire

    Millionaire

    It is rat poison, it's purpose is to kill rats [Rats being those dumb enough to think Crypto is going to the moon]
     
    murray t turtle likes this.
  6. During times of high market stress, all correlations go to 1.

    You should know this by the time you sign up for EliteTrader :sneaky: I do get tired of people getting upset why GLD sold off during a market crash/correction, because they bought it fully sure from some article on the internet that Gold goes up and should be inverted to the markets in general.

    Doesn't matter.... when people got to meet margin calls, all the shit sells off together.
     
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  7. %%
    Mostly true.............................................
    Actually metals dont have to move in lockstep with stock market indexes /ETFs\they may., or may do better in a bear trend
    Rat poison like bit con\crypto cr*p may easy go to goose egg\zero. Really think SPY\ QQQ will go to zero?? LOL:D:D
    And while the SPY\QQQ\DIA may move a lot alike; one profitable Dow daytrader said ''Dow is correlated to itself'' LOL\TRUE
     
  8. Good1

    Good1

    It is strange, and i would like to know how/why exactly it tracks so closely. I've heard it said the stock market itself functions as a hedge against inflation, in which case not too surprising.

    On the other hand, logic would suggest if the stock market is here to stay, so it BTC.

    Then, if BTC outperforms every other stock on the market, that's better than nothing.

    It also means if you are good at macro economics, you should be able to work with BTC as well, or better than you work with the stock market.

    And it means that if you can trade the stock market, you should be able to trade BTC.

    I have no one to blame for not getting out of a position at $48,000 break even, based on expectations what would happen with the stock market.

    Should the bull come back, i would expect BTC to fly high, perhaps highest.
     
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  9. Baron

    Baron ET Founder

    What makes you say that?
     
    murray t turtle likes this.
  10. %%
    Stock market been a good hedge + good performer in the past.
    2] fatal flaws in your logic. [1] Rat poison \bit con is not the stock market[2] Even the usual underperformer DOW may outperform SPY; but Dow is correlated to itself; + bit con\crypto cr*p can easy go to zero, think SPY would?? . I dont+ SPY never has.
     
    #10     Jun 16, 2022
    Baron likes this.