Ooooor there was a coincidence price pump
Like a few times before this year...?
,
Bitcoin has never shown much correlation to gold or other SOVs. That is, until now.
This is incredibly bullish for BTC.
Here's Why
https://twitter.com/Rewkang/status/1214983170862399488?s=201) There is a concept in economics called "reflexivity", popularized by the famous HF Manager George Soros.
Basically, it means that our subjective beliefs of markets can actually influence their underlying fundamentals through increasingly stronger positive feedback loops.
https://twitter.com/Rewkang/status/1214983173416767488?s=202) Reflexivity has been well studied in credit cycles.
Firms that investors believe have strong creditworthiness are able to obtain more favorable loans. This puts them in a stronger financial position and less likely to default. The perception of creditworthiness increases.
https://twitter.com/Rewkang/status/1214983175232872448?s=203) The main argument for bitcoin is as a Store of Value, a hedge against global uncertainty - similar to gold.
However, bitcoin has never had strong price correlations with gold, failing to react to macro events while gold moved sharply.
https://twitter.com/Rewkang/status/1214983183961182208?s=204) During the Iran-US series of events the last few days, you could watch in real-time as Bitcoin mirrored Gold & Crude Oil's sharp price movements.
When Trump on Live TV made it clear that de-escalation was a priority, you could see both BTC and Gold drop hand in hand
https://twitter.com/Rewkang/status/1214983186012237824?s=205) Even though this price movement may have been driven by speculators, many investors have noticed, and this will have strengthened their belief in BTC as a hedge to global uncertainty, leading to more people trading BTC on macro events.
https://twitter.com/Rewkang/status/1214983187618643968?s=206) Whether they are frontrunners, speculators, or actually hedging, it doesn't matter. The resulting impact is further increased correlation and thus increased belief in BTC as a SOV/macro hedge.
https://twitter.com/Rewkang/status/1214983189204066304?s=207) This feedback loop will continue, causing BTC to continue to appreciate while capturing premiums from other SOVs and for enough data to be produced that even the strongest skeptics will not be able to deny BTC's utility.
This is why I'm bullish.
https://twitter.com/Rewkang/status/1214983190881787905?s=20Reflexivity in Credit Markets:
http://its.caltech.edu/~jin/GHJ_Paper_FINAL_20190403.pdfhttps://twitter.com/Rewkang/status/1214983937904107521?s=20
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though at this stage we are not complaining are draw swords for battle yet 
