Summary:
- Bitcoin’s correlation to the Nasdaq reaches an all-time high
- Capitulation seems to be slowing for now.
- Still a lack of large buyers
- Bitcoin difficulty hit a new all-time high
- Bitcoin went down more than 50% in 2018, 2020, and 2021.
This week Bitcoin’s correlation to the Nasdaq reached an all-time high. With no substantial flows to Bitcoin, it is trading in tandem with risk-off behavior from equities with a high beta.
Capitulation seems to be slowing, for now, meaning a decreasing amount of losses being realized. This is shown by net realized profit/loss.
Still a lack of large buyers, or “whales” on-chain. They are usually referred to as entities with over 1,000 BTC and then filter out exchanges.
In short, everybody should just calm the hell down.
Bitcoin had numerous 50% drawdowns in history.
It also went down more than 50% in 2018, 2020, and 2021.
What matters is the long-term horizon. Just take a look at the returns in the last 10 years.
Bottom line
No one has ever lost money with Bitcoin if they held it for more than 4 years. The medium time horizon for Bitcoin is 10 years, but the ideal period is even longer.
As Warren Buffett said,
