Be Careful What You Ask For From Bitcoin

Trump’s Bitcoin-Blessing Can Back-Fire Big-Time

Many will argue the stock market rises for many reasons - from earnings to financial liquidity. I would argue there are two main reasons: Capital Flows & Confidence.

Currently, both are waning. I have referred to this affect as MONEY GOES HOME & MONEY STAYS HOME.

Despite a -21.5% drawdown in SPX this year, as bonds are flat offering no protection and gold rises 18% in its place, Bitcoin has fallen about the same amount with USD: -10%. But that didn’t stop this chart-crime:

DYX Falls While BTC Remains "Steady" Fallacy

CoinDesk is out with a chart that promotes the ‘steady’ value of Bitcoin as the USD falls.

Geoffrey Fouvry, our Classical Economist for EDGE clients, caught it and posted:

“Steady measured in what exactly? In USD!!! So basically:

BTC IS FALLING WITH THE DOLLAR PEOPLE!”

And bitcoin is falling as capital flows and confidence pressure the US dollar lower.