Competing Forces
Aug 10, 2023
• 5
Min Read
Macro Headwinds vs. Idiosyncratic Tailwinds
In our prior notes, we highlighted the market's prevailing sideways trend. Over much of the past month, both BTC and ETH have exhibited remarkable stability, moving within a narrow range. Their realized and implied volatilities are nearing all-time lows.
We've also emphasized the waning correlation between Bitcoin's daily returns and macro assets such as tech stocks and the US dollar index. These correlations have approached zero across most timeframes.
This market seems ca...