Bitcoin is Sucking Global Capital Both if Fear and Optimism
A global capital soft war is happening right now.
Trump is trying to change the world order and, at the same time, expand the fiscal deficit.
This is causing a capital fight at the margins. Global investors are repatriating their money, and this could put pressure on the dollar, bonds, and stocks.
Normally, this would be bad for Bitcoin as it correlates with US stocks.
But we are observing a different phenomenon.
Nasdaq/BTC has been going down steadily since late February, when all the mayhem started.
Bitcoin is acting like a giant capital vacuum that not only operates in the US market, but also everywhere else. So, a capital flight out of the US or out of China for that matter, will only end up in a bid for Bitcoin.
Bitcoin wins on both ends.
- Growth in the global economy and monetary expansion drive Bitcoin higher.
- But a geopolitical fear and jurisdictional risk also cause a flight to Bitcoin.
Bitcoin is the real three-legged stool as it is:
(A) a hedge against monetary debasement,
(B) a beneficiary of global economic growth, and
(C) at the same time, a hedge against geopolitical fear
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