Bitcoin, Gold, Banks, Polo. Big Week
Big Bitcoin News Week
Bitcoin’s Correlation to Gold Rises……as Gold Soars!
Gold prices soared above $2,000 per ounce this week. Near an all-time high. Significant? Yes. The peeps apparently don’t have much faith in banks at this time. All of a sudden people are paying attention to FDIC insurance limits. And gold is seemingly more secure than bank accounts.
That’s easy to understand. Some pretty major banks have failed already this year, and more are teetering on the brink. (See below, also.)
At the same time, Bitcoin’s price correlation to gold has hit an all-time high, at nearly sixty percent. What does this mean, and why is it significant? It means that Bitcoin is behaving more like a store of value than like a stock. And, because Bitcoin is decoupling from tech stocks, which it should. It’s not a “risk asset” like risky stocks, it shouldn’t react to interest rates, inflation or corporate earnings. In fact, it should thrive in inflationary environments.
Keep any eye out for how gold performs. And Bitcoin.
This is all bullish for the future of Bitcoin.
Money Fleeing US Banks
In March, money being withdrawn from US banks reached its highest total ever. By a long shot. There is no faith in the US banking system right now. People do not feel that their money is safe in the bank.
And it’s not just the bank failures that are sounding the alarm.
It’s the inflation levels that the US is currently experiencing.
Leave all of your money in the bank, and you may be 10% poorer next year, in purchasing power.
The following graph says it all, and it is alarming. The market has spoken. The state of US banking right now is, well, very shaky. Despite the fact that Treasury Secretary Janet Yellen says “the banking system is stable.” Remember, despite what the news headlines may say, the markets reflect the view of the masses.
As Gary Vaynerchuck always says, “The market is the market is the market.”
Best Performing Asset in 2023? Yep.
That would be Bitcoin.
The mainstream media won’t tell you this. They’d rather focus on the failures of “crypto projects.” Centralized, sponsored tokens that have been pre-mined by their founders, that are unlimited in supply.
They are the absolute antithesis of Bitcoin.
Bitcoin has outpaced the S&P 500 index, the Dow Jones Industrials and the NASDAQ index by a country mile. See the chart below. It’s also outpaced gold, silver, real estate, bonds, and probably Beanie Babies.
And remember this: In Bitcoin’s existence, over any four-year period, Bitcoin has been the best performing asset class in the world. Let that sink in. It would seem that Bitcoin deserves an allocation in most investment portfolios.
Ralph Lauren Accepting Bitcoin for Payments
Ralph Lauren’s new luxury-themed retail concept in Miami’s Design District now accepts cryptocurrency payments. Customers can make purchases with Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC), per coincu.com news.
The apparel giant chose Miami to unveil the new service, mainly because of the city’s burgeoning high tech and crypto industries. Lauren has partnered with BitPay to accept the various forms of crypto payments. In addition, the retailer has developed its own NFT which will be gifted to all of its VIP “Poolsuite” members.
The world is discovering Bitcoin. I’m glad you are, too.
And thanks for reading. Please share this letter with a future-coiner.
Do your own research into Bitcoin. Only invest what you can afford to lose. Bitcoin is, at times, quite volatile. Keep a long-term perspective. Buy steadily and hold for the long-term, as you should with any investment.
Bitcoin Tools, Platforms, Podcasts:
Twitter - Follow The Bitcoin Files on Twitter at @BitcoinNewslet1 for all of my articles, commentary and links to my contributions to Bitcoin Magazine.
Medium - Check out my writings on Medium, including articles not featured in the newsletter. Join my 600 other followers who read and write about crypto. medium.com/@rickmulvey
Podcasts - To hear the top names in Bitcoin, and learn more than you could imagine, check out The Pomp Podcast with Anthony Pompliano, What Bitcoin Did with Peter McCormack, and The Wolf of All Streets Podcast with Scott Melker.
Issue No. 103, April 7, 2023
Rick Mulvey is a CPA, crypto consultant, and frequent contributor to Bitcoin Magazine. He writes about all things Bitcoin, and yells at the Yankees and Giants. He also runs marathons and makes wine, neither professionally.