“I like to point to Paul Tudor Jones’ May 2020 letter to investors, where he talks about unprecedented levels of global monetary stimulus and the fact that fiat money can be printed away.
“As institutional adoption continued to increase, so did correlation of Bitcoin relative to the equities market.
“A pivot in the Fed language earlier this year as it relates to their rate hike schedule hit Bitcoin the hardest,” McMillan explained.
Whereas technology stocks took a little longer to sell off, and that is still continuing.
And when do we hit peak inflation? This is all about whether or not the Fed can thread this needle of engineering a soft landing.
“Bitcoin is trading like a coiled spring where any upside surprise could attract a real bid from other risk assets or from investors on the sidelines.
Bitcoin is currently sitting around its support level of $37,000, last seen at $37,761.
“For Bitcoin to break below $30,000, you’d have to see a lot of selling.
“When you look at Bitcoins’ potential for growth and disruption over the next decade, it’s a lot more compelling than many technology companies out there.