I don’t get it. Why does BTC correlate with market? With political uncertainty and tariffs, gold is spiking but BTC is not.
#asknostr
Discussion
The investment world seems Bitcoin as a risky tech stock.
The brightest minds in the space view bitcoin as a safe haven and insurance against debasement and inflation.
I could be wrong but I think a lot of BTC holders are also traders , when markets drops they need liquidity fast to cover margins calls so they start selling and it get amplified by BTC own margin calls when the movement starts , the fact that they can sell it 24/7 to quickly resolve fiat issues also helps . With the years there is less and less of that type of crowd so the drops are not as dramatic as they used to .
Bitcoin responds mainly to liquidity. Interest rates, economic data, etc.
The people who buy gold in times of uncertainty are thinking about the end of the world, not circumstances in which there's electricity and computers to run the blockchain. They're imagining themselves living in a cave, or some secure location where guns are the most advanced technology. It's the survival bunker mentality.