When conducting a mathematical analysis of bubbles, Convoy Investments fund managers Robert Wu and Howard Wang took a look at serial correlations and the role it plays. Their work considers many bubbles, such as the Dutch Tulip price run-up and the resulting dramatic market crash. But their most focused work is in what might is the largest price run-up in history – that of Bitcoin.
In the value vs momentum market continuum, bitcon is clearly driven by momentum
There are two components that “ultimately determines the propensity for bubble-like behavior.” These components are impulses created by a value approach to investing versus a momentum approach, the former Bridgewater Associates employees note in a December 11th client letter.
Please login to view the rest of this article - Not subscribed? Get our adfree exclusive content for only a few dollars a month.
It also helps us fund our operations so think of it as supporting quality journalism.