If Bitcoin needs to work, it must maintain a negative dollar correlation. But it needs to perform the way it should be consistent.
ChatGPT gave a reason that:
Bitcoin and the US dollar do not have a fixed correlation and can move independently of each other. However, historically, the value of Bitcoin has been negatively correlated to the value of the US dollar. This means that when the value of the US dollar increases, the value of Bitcoin tends to decrease, and vice versa. But this is not always the case, as the crypto market is highly volatile and many factors can impact on the value of Bitcoin, such as regulations, adoption, and market sentiment.
If Bitcoin will survive in the long term, it has to perform a negative correlation with the dollar index.
The past bull market has shown that Bitcoin has tracked the stock market particularly tech stocks which makes Bitcoin unsustainable and grow too fast to exhaust its momentum.
As a result, it crashes faster than any tech stock.
Bitcoin needs to focus on its fundamentals to bring back the narrative, or it will loss in the long term.
Photo by Karine AvetisyanUnsplash
Note: the post was shared on multiple platformsDon’t forget to check out my new book
You can refer my previous article lists
Things that do not work out in crypto after 14 years of its creationCrypto has a lying problem
Crypto bro problem
History repeats itself
Banks stay away from crypto for now
Disputes between DCG and Gemini
New NFTs Trend
SEC Lawsuits
Why play to earn is a slavery game
Why AI is more convincing than blockchain
Bitcoin got one more problem