I fail to understand this one, despite seeing it in the newsletter every other week.
lhs is logarithmic
rhs is linear
Seems like a flawed comparison, but I don't really grok most of the macro stuff anyway
Discussion
Bitcoin is on an exponential structural tech/adoption trend, but the cyclical direction of that trend is highly correlated with global liquidity.
Is that correlation more about sentiment than actual monetary value (as the bitcoin axis is exponential)? As there’s more liquidity, people become more comfortable with storing value in the network, perhaps?
Would be more useful if both were on the same scale (log) or standardized scores for a single y-axis
Correlation doesn't mean 1:1 linear relation.
An observation can be "everytime that A goes up, B follows" and vice versa - even if scales are completely different.
Correlation also doesn't mean causation. It's an observation that Lyn presents here.
Aren't you thinking a bit too much. Why not accept things the way they are it's the best for you.