RECAP: BITCOIN'S GEOPOLITICAL EDGE
Today’s Nuggets
Bitcoin is a Perfect Storm of Confusion
CleanSpark’s Expansion
MicroStrategy Announce Convertible Senior Notes
BTC’s Low Correlation with Equities & Gold
GBTC from 620K to 2220K in 173 Days
The Fear and Greed Index is up from 33 a few days ago.
John Oliver summed it up beautifully.
I thought this was the most poignant statement, which is why Bitcoin is a perfect storm of confusion for so many people.
Bitcoin captures the complexity and confusion of two main things:
Technical Complexity: It involves advanced computer science concepts, such as cryptography and blockchain technology, that are beyond many people's understanding.
Financial Literacy: Bitcoin challenges traditional financial concepts and operates outside of conventional banking systems. It involves volatile markets and raises questions about all sorts of stuff.
This report by BlackRock looks at the striking comparison between Bitcoin, the S&P 500, and Gold. The chart displays how each performs after major geopolitical events and observations.
On January 3rd, 2020, we had the U.S.-Iran Escalation, and the 10-day return for Bitcoin after it happened was 12%. The 60-day return BTC return was 20%, where gold was flat and the S&P 500 was only up 2%.
Then, we had COVID-19, which was definitely a very volatile time in the markets. Bitcoin fell 25%, but 60 days later, it was up 21%, while the S&P 500 was still down 20%, and gold only moved 20%.
The 2020 U.S. election took place on November 3rd, 2020. The 10-day return for Bitcoin was up 19% and the 60-day return was up 131%. Gold was down 1%, and the S&P was up 12% over that 60 days. I wonder if it will repeat this time around for the election.
We have a number of geopolitical things happening, like the US elections. Hopefully, there will be no more wars but it will be an interesting time.
Bitcoin is extremely volatile but far outperforms other assets.
Remember, Bitcoin loves a crisis!
The CleanSpark hash rate has exceeded 26 exahash and they are planning to get to 37 exahash before the end of 2024.
They are expanding in Georgia and Tennessee. They just bought another facility in Mississippi. The company is basically acquiring facilities and expanding hand over fist really fast.
A friend of the channel, Jason Lowery, has a gag order.
It shows you sometimes
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