GBTC: Bitcoin Investment Trust (Not an ETF) OTC:QX Message Board

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Non-Tech : GBTC: Bitcoin Investment Trust (Not an ETF) OTC:QX

GBTC 89.02

-1.2%

Oct 28 4:00 PM EDT

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To: Doren who wrote (234)	3/4/2023 3:51:54 PM
From: nicewatch	Read Replies (1) of 270

You'd have to more specific by citing timelines of your claims. As stated it kind of reads like a non sequitur. For many years bitcoin was touted as an uncorrelated asset and an inflation hedge, then when its use as a transactional medium never materialized and became more of a volatile speculative vehicle the meme of a type of digital gold or store of value arose. Imo, there are two main catalysts since the 2020 lows that made bitcoin more correlated and less of a "hedge". While everyone now knows about the halving cycle of the difficulty of "mining" bitcoin, the huge amount of liquidity injected into the markets and the economy by the Fed and Treasury during the early phase of the Covid pandemic goosed all speculative assets, so bitcoin responded just as tech stocks did or gold, or beachfront condos, etc. Also I think the move from 2020 lows in bitcoin had much more investment and adoption by traditional wall street firms and other large asset managers than prior bitcoin bull cycles. Fidelity, Goldman, etc. This wasn't all directly buying bitcoin but investing in crypto startups and other parts of the ecosystem. Of course there was a huge boom in crypto dedicated hedge funds but it takes a lot of $30-100 million funds to amount to firms like Vanguard and Fidelity that manage trillions declaring that they are looking to allocate a few % into crypto based investments. Imo those two factors, especially the increased involvement by wall street firms and large mainline asset managers made bitcoin more correlated to stocks than in prior cycles. The chart of bitcoin from the 2020 low to the late 2021 high and the proceeding large correction in 2022 rhymes with what a lot of the biggest gaining then correcting tech stocks did over the same period. fwiw.

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