Fundstrat international Advisors co-founder Tom Lee has mentioned that Bitcoin (BTC) is positively correlated with the S&P 500 market index and is not a hedge in opposition to macro turmoil.
Lee voiced his opinion during an interview with enterprise information outlet The Block published on Oct. 1.
Bitcoin moves consistent with macro causes
for the duration of the interview, Lee admitted that his opinion is unpopular since many consider Bitcoin to be a hedge towards macroeconomic turmoil. That being stated, at the same time he consents that some crises can have a constructive influence on Bitcoin’s fee — citing the concern that took position in Cyprus — overall, he is positive that BTC operates in accordance with macro motives, not towards them. Lee recounted:
“If I had to say Bitcoin’s a macro hedge then i’d say that the evidence must robotically show bitcoin fee does first-rate when the S&P has a nasty year. Let me give you the evidence in the years when the S&P has been down on the grounds that bitcoin’s inception — bitcoin has averaged a terrible 19% annual return.”
Bitcoin is up when the S&P 500 is up
Lee additionally famous that within the years for the period of which the S&P index was once under its long-time period ordinary return — Bitcoin’s natural reap used to be 300%. While, within the years which have visible the index gaining 15% or extra — BTC’s ordinary obtain was 1,800%. Lee concluded:
“Bitcoin’s quality years have all taken place in the years the place the S&P has performed very well.”
Lee’s stance is in contrast with the ideas expressed by way of the CEO of crypto repayments firm Circle, Jeremy Allaire, who suggested on the starting of August that macroeconomic turmoil is dependable for the progress that Bitcoin has noticeable on the time.