Bitcoin and the entire crypto market is a very speculative asset class. And under this feature, Bitcoin has shown to historically crash and top before other assets classes. It is almost as if bitcoin is the last speculative frenzy and first to get washed out - as one would expect as you go down more speculative assets. As risk on develops in the market place, it first goes into least risky assets and to the most risky. A broad idea of this would be from treasuries to IG bonds to HY Bonds to Large-Cap Equities to Small-Cap Equities and finally to crypto.
Bitcoin & Risk On/Off Macro Dynamics
Bitcoin & Risk On/Off Macro Dynamics
Bitcoin & Risk On/Off Macro Dynamics
Bitcoin and the entire crypto market is a very speculative asset class. And under this feature, Bitcoin has shown to historically crash and top before other assets classes. It is almost as if bitcoin is the last speculative frenzy and first to get washed out - as one would expect as you go down more speculative assets. As risk on develops in the market place, it first goes into least risky assets and to the most risky. A broad idea of this would be from treasuries to IG bonds to HY Bonds to Large-Cap Equities to Small-Cap Equities and finally to crypto.