As a foreshadowing, below is a graph showing the correlation between $BTC’s price and China's yuan ($CNY) in 2016.
Article: washingtonpost.com/news/wonk/wp/2…
![](https://pbs.twimg.com/media/D9HsSl5XUAIpdnU.jpg)
Sometimes a #bitcoin rally preceded a CNY devaluation, as shown in green ovals below (presumably Chinese insiders stockpiling BTC before PBOC's action)
Other times bitcoin would show sustained strength post yuan weakness
![](https://pbs.twimg.com/media/D9HtTYQXYAEL7Wd.jpg)
We were oversold then, we rebounded, but we rebounded more than the fundamentals would justify imo.
In such a scare, people sell their most experimental assets, such as #bitcoin and other #cryptoassets (exacerbated by endogenous doubt).
And so risk-appetite has increased, including for $BTC.
"Remarkably, the maximum correlation, positive or negative, that #bitcoin exhibited with each of the other assets is the minimum correlation that any of the other paired assets displayed with each other."
![](https://pbs.twimg.com/media/D9HzHovWsAADZZN.jpg)
My intuition is over the next 5-10 years $BTC will continue to swing between being risk-on & risk-off, as with 2018 and 2019.