This Needs To Happen Fast For Bitcoin

Concerns Regarding A Second Stock Market Crash

I have often voiced my concerns in relation to a second stock market crash and as I observe the actions of investment "gurus" such as Warren Buffet, my concerns appear to be playing out. The majority of printed money makes its way to the banks and large corporations and yet Buffet is still offloading a significant amount of holdings in these sectors.

A lot of people have mentioned that Warren Buffet is not actually buying gold but rather a gold mining company, Barrick Gold. This is true but what they fail to mention is why he is doing this. Buffet is actually buying gold in essence, or more accurately put, he is buying the idea that the price of gold is going to skyrocket. 

If you have ever traded gold, ETF's or gold mining stocks you will be aware of a fundamental aspect that is possibly going unnoticed. When the price of gold increases, certain gold mining stocks actually increase far higher in percentage terms than the actual price of gold. This is especially true in regard to junior mining stocks.

The percentage return of a gold mining stock can far outperform the percentage return of gold itself in a gold bull market. Buffet is very much banking on the price of gold skyrocketing, he is just hoping to multiply it.

Bitcoin Needs Independence From Traditional Markets Before Another Crash 

Bitcoin is currently looking very good, especially against stocks and even gold but without a significant decoupling that could change if traditional markets collapse yet again. We have seen the beginnings of a decoupling recently but this needs to continue and gain momentum. A second market crash would most likely also affect gold in the initial phase but recovery would be swift. If Bitcoin is to follow a similar path it needs to establish a severe decoupling from traditional markets.

There is no avoiding an initial drop for any asset in a crash but there are certain dynamics that can cause it to rebound speedily and move on to new highs. A strong decoupling, compounded by a new all time high could go a long way to protecting Bitcoin in such an event. This would obviously create even more investor confidence for Bitcoin and most likely be a catalyst to even higher highs!

If Bitcoin can achieve this before markets collapse, then I believe we are in for a wild ride! If markets somehow remain stable then I believe there is no doubt that BTC will continue higher. These are obviously my views and not investment advice.