I've never bought into the idea that Bitcoin would prove to be a good, un-correlated asset in a downturn.
But you really can't expect it to behave in an uncorrelated fashion once "institutional money" owns it, since at that point it's just another thing to sell to raise cash.
But you really can't expect it to behave in an uncorrelated fashion once "institutional money" owns it, since at that point it's just another thing to sell to raise cash.
The last few years, the crypto industry has been pushing coins as being both a good diversifier and well-suited for serious investors.
But that can't last.
Once the asset is owned by funds that have to write quarterly letter to clients, that diversification benefit is gone.
But that can't last.
Once the asset is owned by funds that have to write quarterly letter to clients, that diversification benefit is gone.
That's the lesson from the Long Term Capital Management meltdown. Disparate assets that at one point might not have been correlated became so, once they shared a common, distressed owner.
