Fundstrat Global Advisors has clearly been a thought leader in crypto fundamentals, technical analysis and deep understanding all things crypto. Have you ever seen Tom Lee speak? I suggest that you view his videos on CNBC and hear his views on crypto and equity strategy. We are giving you samples of his and his team`s work. And have a look at their website.
Over the past 7 days, the FS CryptoFX Agg Index increased by 11.0%, compared with a 3.1% decrease for the S&P 500 (Slide 6). Bitcoin was pretty quiet last Monday, nudging down 0.4%, but switched to “rally” mode and has had six consecutive days of gains since Tuesday. The recent Bitcoin rally strengthens the argument for Bitcoin as a store of value.
President Trump’s tweet Thursday afternoon triggered a global financial markets selloff. While the spot Gold price climbed to a new high since 2013, BTC, aka digital gold, rallied 15% over the past week as a “flight to safety” during the recent market turbulence. BTC surged 4.4% within 3 hours after the announcement of an additional 10% tariff on imports from China and rose sharply again when the CNH price against USD depreciated to the critical level at 7 CNH/USD on Sunday evening. Furthermore don’t forget Hong Kong, one of the most important Crypto centers in Asia, and its recently increasing political tensions. In fact, the correlation between FS Crypto 10 Index (primarily BTC) and bonds/gold has been increasing since the end of June when the geopolitical risks started to rise while the correlation between the index and S&P 500 has been falling (Slide 28). We reckon these movements are not coincidental. It reflects the increasing adoption of Bitcoin by investors and reinforces the argument of the emerging asset class as a store of value.
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