Crypto-Crash Part 2

Crypto-Crash Part 2

On January 17, I wrote a blog titled “Crypto-Crash” (link) where I speculated that the next stop for Bitcoin would be $8,000. On that day Bitcoin touched $9,100 and then bounced back to $12,000. It has since been range bound between $10,000 and $12,000… until today. Minutes ago, Bitcoin broke below the $10,000 support.

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Why is this important? In addition to a strong inverse correlation to gold that I discussed in the earlier blog, Bitcoin appears to have a reasonable correlation to stocks also. In the chart below, I compared Bitcoin to the Dow Jones Industrial Average, the DJA lagged by 45 days. Bitcoin had its melt-up in December and stocks have, until today, had their melt-up in January. Is the speculative peak in Bitcoin something stock investors should take notice of?

Guy Spier And Mohnish Pabrai On What Makes A Great Investor

Mohnish Pabrai"I am a better investor because I am a businessman, and a better businessman because I am no investor" - Warren Buffett In the past, the value investor Mohnish Pabrai has spoken about why investors need to have some first-hand business experience. Pabrai started his own IT consulting and systems integration company, TransTech, Inc, in Read More


The $20,000 blow-off top reached on December 17 has now given way to a 50% peak-to-present decline. Does this relationship prove durable and telegraph a 10% decline in stocks? If so, the recent melt-up in stocks may be at risk.

Article by Knowledge Leaders Capital

No posts to display