Bitcoin Maturing as Digital Gold as Correlations Shift and Supply Tightens
• Bitcoin's correlation with interest rates and risky assets like stocks broke down in 2022, indicating it may be evolving to behave more like gold • Bitcoin and gold have rallied together recently, leading to speculation that Bitcoin could be seen as "gold on steroids" • 70% of Bitcoin is now illiquid, held by long-term investors unwilling to sell even after 160%+ rallies • The amount of Bitcoin held on exchanges has declined 30% from its peak, constraining supply • As the market matures, Bitcoin seems to be moving to stronger hands less inclined to sell based on price fluctuations