This overlooks the far worse or ominous situation: the correlation with the Nasdaq is only to the downside, plus a large beta multiple of 3x or more, not to the upside. Hence why the correlation is low, but it captures all of the downside of the Nasdaq. This is also why correlation can be misleading, or why correlation and diversification are not the same thing. People who think they are diversifying by buying a 'low ' correlated asset like Bitcoin are merely diversifying losses and not reaping any of the benefits of diversification. Indeed, Enron stock had a a low correlation with the S&P 500 in 2001-2002.
Yes, this is a really weird way to say the asset is taking a beating. I'm not familiar with "cryptonews.net" but I'm guessing it's pro-Bitcoin and this is an effort to put a positive spin on Bitcoin's current woes.
The stock market is at or near a top, and I'm expecting a pretty massive reversal in the coming months. We are living in the midst of a synchronized global recession, as China's post-COVID reopening has failed. Rough times are ahead here in the US...
If bitcoin proves a reliable leading indicator for the broad stock market, trad-fi bros are going to be so mad.
pretty massive reversal in the coming months.
people have been saying this all year. you may be right but history generally shows it's better to stay invested.
VTI is trading at 20.6x earnings, which is a little high but nowhere near “the sky is about to fall and everyone will be crushed” territory.