caueconomy2022-04-18

We can no longer ignore the macro. Bitcoin is a macro asset!

Through the Spent Output Value bands in dollars, we were able to observe the paradigm shift with regard to capital movement within bitcoin. Something that reflects the current correlation with the traditional market. After 2020, the dollar volume traded on bitcoin reached very high values, inconsistent with retail capital. We can clearly see the institutional participation in the market, entities that are macro allocators and make decisions through indicators external to the blockchain. That is why studying bitcoin only through its price and internal movement will be inefficient, it will be necessary to understand the macro environment to understand the movement of bitcoin. This is visible through the correlation with Nasdaq, previously in a regime with several positive/negative changes, now the predominance of positive correlation since 2020. The current value being 0.95 correlation. Dear analysts, don't ignore the macro!