By Bilal Hafeez 22-02-2021
In: hive-exclusives | Cryptocurrencies & Blockchain

Bitcoin: A Bet on Reflation, Not the Dollar’s Demise

(1 min read)
Resize text:

Bitcoin is up almost 90% this year. Many crypto enthusiasts think this signals that bitcoin will replace the dollar in the global financial system. Yet it could also simply be a risk asset that has performed well in an environment of ample liquidity and increasing tech adoption. This could put bitcoin into a similar camp as top-performing NASDAQ companies like Chinese internet search company Baidu (up 57% this year), streaming device manufacturer Roku (up 41%) and Chinese video sharing company Bilibili (up 68%).

Moreover, if we look at the correlation between the level and changes in bitcoin and key macro markets, we find bitcoin is strongly correlated to near-term inflation expectations, Chinese stocks and tech stocks (Chart 1). So, it is moving with the strong reflation theme. Its correlation with commodity markets like oil and copper also shows this.


£39/month thereafter

For access to our Slack Chat Room, where we discuss all things markets with our researchers and subscribers



Successful Start-Ups Build Strong Founding Teams (4 min read)

By Sam van de Schootbrugge | Feb 10, 2021
Start-up success hinges on many factors, but most would agree that the skills and experience of the founder and initial founding...

Where Will the Economy Find 10 million Lost Jobs? (3 min read)

By John Tierney | Feb 08, 2021
The headline January labour market report was another downer – private payrolls rose a scant 6,000 versus the consensus...

Where Can you Get Higher Bond Yields?

By Caroline Grady | Dec 04, 2020
US yields are rising. The combination of growing optimism over a global recovery given vaccine progress, and the possibility of a US...


Which Countries Will Reach Covid-19 Herd Immunity in 2021? (3 min read)

By Sam van de Schootbrugge | Feb 19, 2021
Summary Vaccination rollouts are accelerating, and global…

Higher US Yields Are Good for Equities (1 min read)

By Bilal Hafeez | Feb 16, 2021
Many say that higher US bond yields…

Tesla Bitcoin Bombshell: The Trickle May Turn to a Flood (4 min read)

By John Butler | Feb 12, 2021
Summary US corporate cash piles continue to…

Want To Join Our Community Of Leading Investors And Researchers In Our Slack Chat Room?