The Trader Top 9: Sushi, Gold & Stock Correlations, and Bitcoin’s Increasing Relevance

Welcome back to the Trader Top 9! As DeFi and Stablecoins continue to swirl, the inflation concerns of investors like Stan Druckenmiller have bitcoin - at peak historical correlation with gold - into the spotlight again.

9. As it’s been for months now, DeFi was nuts. The latest example was the huge move from the Uniswap automated market making protocol to a forked version that added a new token for liquidity providers.

8. It’s not just DeFi surging, however, but stablecoins as well, which have been growing all year but with an even bigger pickup over the last two months.

7. On the bitcoin front, some are complaining that it seems too correlated with stocks to be useful.

6. Others point out, however, that it has been even more correlated with gold

5. The gold correlation seems to fit with an increase in bitcoin whales that seems to correspond to Fed action around the COVID-19 crisis

4. It’s a point that has been made before, but a few months down the line, it still seems like the circumstances were tailor made to illustrate bitcoin’s relevance this year

3. Reinforcing the notion that the Fed has created some unintended but significant long term consequences, Stan Druckenmiller joined CNBC to say that he thought 5-10% inflation was possible

2. This is why, hold aside all of the short term narrative jousting, crypto is moving to a likely multiyear bull cycle

1. Whatever else happens…pop culture certainly seems to be nudging closer

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