Unleash Wealth: Bitcoin Surpasses Gold, Stocks Globally

Bitcoin, the world's most prominent cryptocurrency, continues to demonstrate a unique correlation with global liquidity. The digital asset's movements have been found to sync with global liquidity an impressive 83% of the time, according to a comprehensive report by venture capitalist Lyn Alden, as reported by CryptoSlate. This strong correlation surpasses all other major asset classes, including gold and stocks, asserting Bitcoin as a reliable liquidity barometer.

The report examines Bitcoin's correlation between May 2013 and July 2024, showcasing a strong positive relationship with global liquidity. Despite the correlation weakening over shorter timeframes, Bitcoin still maintains the highest average correlation over a rolling 12-month period. Interestingly, Bitcoin's directional alignment with liquidity sets it apart from traditional assets, moving in the same direction as global liquidity for 83% of 12-month periods and 74% of 6-month periods.

In the world of Bitcoin, on-chain data is fundamental. The research recommends that investors consider global liquidity as a key determinant of Bitcoin’s long-term price performance. However, it’s essential to note that Bitcoin’s correlation with liquidity can break down during significant industry events or extreme market conditions.

Meanwhile, in another corner of the Bitcoin universe, rumors have been swirling about Coinbase and BlackRock's dealings. The question at the heart of the matter: is Coinbase issuing 'paper Bitcoin' to BlackRock and other ETFs? As Decrypt reports, these allegations have caused quite a stir in the crypto community.

The conspiracy theories suggest that Coinbase, serving as a custodian for most Bitcoin ETFs, including BlackRock's, is not actually purchasing the Bitcoin requested by these funds, but rather issuing “IOUs,” or “paper” Bitcoin. Critics say the current Bitcoin price should be higher with the billions pouring into the market through new spot Bitcoin ETFs. Coinbase CEO Brian Armstrong has dismissed these rumors, assuring that all ETF mints and burns are ultimately settled on-chain.

Amidst these unconfirmed rumors, BlackRock recently filed an amendment to its ETF registration with the SEC, now requiring Coinbase to release Bitcoin much quicker to the asset manager within 12 hours of notice. Bloomberg ETF analyst Eric Balchunas denounced the claims as a “conspiracy theory,” affirming that there’s never been a case of the underlying asset not being with the custodian. Regardless of these assertions, Bitcoin's price continues to surge, up over 140% over the past year following the approval of the ETFs.

Links to the stories discussed: - Bitcoin’s correlation with global liquidity outshines gold and stocks - Fascinating-> Is Coinbase Issuing 'Paper Bitcoin' to BlackRock and Other ETFs?