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Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Sunday, May 28, 2023

Bitcoin's Idiosyncratic Risk

Bitcoin's price is supposed to move along the lines of small capitalization technology stocks, tech stocks with market capitalization below 2 billion USD, in US terms, that is.

Interestingly enough, Bitcoin is trying to break up the Bitcoin, small cap tech stock correlation or at least the correlation between Bitcoin's price and small cap technology stocks is diminishing as of late.

The main argument for that is that small cap tech stocks are the most hurt in the initial stages of the current dot-com bubble. Adding to that the Silicon Valley Bank debacle explains why people flock to Bitcoin and cryptocurrencies.

Actually, Bitcoin functions as an independent, distributed, public 'bank'. You store your money there and if one is careful he or she can count that his money will be there when he needs them.

 

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