What Explains Bitcoin’s Resurgence?

nymag.com

8 points·sergeant3··4 comments

Chart of the USD supply: https://fred.stlouisfed.org/series/M2 (near vertical line up.) This drives nearly all assets to new all time highs. Bitcoin acts as leverage on the S&P 500. It goes up? Bitcoin goes up more. It goes down? Bitcoin goes down more.

Combine that with a wall street actually buying a few Billion USD (Grayscale investment trust has 3% of all BTC now) and you have a receipe for compounding movement upwards. Ths price chart looks quite similar to 2017, with dips that are only 20% deep instead of 40%. We just recently had the first 30% dip after the 10x run up. In the everything bubble, crypto reigns supreme. Disclaimer: I'm biased.

Why would BTC correlate with SP500? There hasnt been much correlation in the 11 years BTC has existed, only during recent year and not much really.

In a nutshell, companies and institutions alike have come to realize that Bitcoin really is the world's hardest money, and a much better store of value than any fiat money.

Proof:

https://bitcointreasuries.org/

And that's just the tip of the iceberg.

Thats not the tip of the iceberg. Thats pretty good coverage of the publicly know institutions holding BTC and thats already quite a lot of BTC. The rest is held by private companies and individuals, but I doubt there are lots of notable organisations holding BTC outside that list.

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