Bitcoin a digital avocado

See the latest Australian dollar analysis here:

Bonds, not stocks or houses, are pointing to Australia’s future

It’s not a universal safe after all. If the price avocadoes crashes then so does you BTC, via FTAlphaville:

Bitcoin, that famous uncorrelated safe haven, seems to be crashing again.

Reasons given for the crash include “China euphoria” fading (Xi Jinping said something blockchainy in late October and apparently the jubilation that followed has now, suddenly, disappeared); “concerns about a crackdown”“pressure from bears” and “traditional markets cooling”.

In other words, as per usual, nobody has a bally clue what’s going on.

At pixel time, bitcoin was down almost 7 per cent on the day, at $6,785 according to Coinmarketcap (which aggregates prices across several exchanges). In the past week, it’s lost more than a fifth of its value.

Others in cryptoland were faring no better: Ethereum was down about 6.7 per cent on the day, while Ripple XRP was down over 7 per cent, having fallen almost 95 per cent from its high of $3.84 in early January 2018 (remember when its founder Chris Larsen was supposedly “richer than Mark Zuckerberg”?).

We’ve established in previous posts that bitcoin is definitely not a safe haven and does not correlate with gold (despite being touted as “digital gold”). Former Alphavillain Tracy Alloway may have found a more important correlation, however:

Now, back to, you know, investment.

David Llewellyn-Smith

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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