1/5
What do Crypto prices correlate with?
A popular narrative now is an inflation hedge.
But as this chart shows, the correlation is poor (bottom panel). Of course, this look backwards so it could be an inflation hedge going forward.
But something else correlates better ...
What do Crypto prices correlate with?
A popular narrative now is an inflation hedge.
But as this chart shows, the correlation is poor (bottom panel). Of course, this look backwards so it could be an inflation hedge going forward.
But something else correlates better ...
2/5
Two charts below.
One (single line) is a standard price chart of ETH. The other (two line) is the Bloomberg Payments Company stock index (red) with the ETH price PLOTTED INVERSELY.
When shown like this, they do seem to move with each other.
Two charts below.
One (single line) is a standard price chart of ETH. The other (two line) is the Bloomberg Payments Company stock index (red) with the ETH price PLOTTED INVERSELY.
When shown like this, they do seem to move with each other.
3/5
Below is the correlation (bottom panel) between payments and ETH (plotted inversely in top panel).
The correlation is getting more negative over time.
This mean the relationship between higher ETH prices and lower payment stocks, or an inverse relationship, is growing.
Below is the correlation (bottom panel) between payments and ETH (plotted inversely in top panel).
The correlation is getting more negative over time.
This mean the relationship between higher ETH prices and lower payment stocks, or an inverse relationship, is growing.
4/5
This messy chart below is the cumulative year-to-date returns.
The thick blue line at the top is the S&P 500. The rest of the lines are the payment stocks/index. They have all lost significant money since April even though the S&P 500 is up a respectable 12%.
This messy chart below is the cumulative year-to-date returns.
The thick blue line at the top is the S&P 500. The rest of the lines are the payment stocks/index. They have all lost significant money since April even though the S&P 500 is up a respectable 12%.
5/5
As crypto rallies, Visa, Square, Paypal, Western Union, etc. sink and sink.
Restated, the stock market is signaling that crypto is the future of payments, not these stocks.
This correlation does not apply to bank stocks/Index. Or, should I say "not yet?"
@MarcRuby
As crypto rallies, Visa, Square, Paypal, Western Union, etc. sink and sink.
Restated, the stock market is signaling that crypto is the future of payments, not these stocks.
This correlation does not apply to bank stocks/Index. Or, should I say "not yet?"
@MarcRuby
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