Collapsing Bitcoin/Cryptos May Guide the Next Recession - "Healthy Correction" is what we should hear soon from stock market analysts (who risk unemployment if not onboard), following collapsing cryptos. The buy the dips mantra since 2008 may be over, here's why: - US stock market cap-to-GDP has reached the highest in about a century - S&P 500 and NDX 180-day volatility is the lowest in roughly eight years - The crypto bubble is imploding, Trump euphoria peaks gaining contagion - Gold and silver grabbing alpha at a velocity last matched about half a century ago and spiking volatility set to trickle up to stocks My graphic highlights Bitcoin (divided by 10) at about the same level as the S&P 500 on Feb. 13, with both hovering below $7,000. It seems unlikely that volatile and beta-dependent Bitcoin can stay above this threshold if beta doesn't. Initial normal reversion is toward 5,600 SPX ($56K Bitcoin), then what? Part of my base case for Bitcoin to revert toward $10,000 is a US stock market peak. 7,000 S&P 500, 50,000 Dow can't be tops -- or else. Full report on the Bloomberg here: blinks.bloomberg.com/news/stories/t… {BI COMD} #bitcoin #stockmarket
