Despite its growing reputation as an uncorrelated hedge, Bitcoin advocate and Galaxy Digital CEO Mike Novogratz says Bitcoin remains linked with the movements of the macro economy.
When asked what he anticipates will happen if the current speculative bubble bursts, Novogratz says he fully expects Bitcoin to take a plunge with the rest of the equities market.
“If the speculative bubble bursts Bitcoin will go down for a while. There’s too much correlation between people with risk assets, right. If you made a ton of money here and you’re losing a ton of money here, at one point you’re going to take some profits where you’ve made money. And so if the S&P was down 20% in the next three days Bitcoin would be lower not higher.”
Despite this correlation, Novogratz believes