Bitcoin's Golden Bloodline Awakens: This Could Be the Start of the Largest Bull Market in BTC History

What we are seeing now is likely just the beginning of a major bull market.

Author: Benson Sun (@BensonTWN)

In the week ending August 22, BTC surged 24%. The market erupted in discussion overnight: Is the bull market finally here? Many still hold onto skepticism.

To state the conclusion first: I believe we are not only entering a bull market, but a major-cycle bull market.

The Golden Affiliation of Bitcoin Fully Awakens

Let’s start with something highly anomalous.

In the very same week that BTC skyrocketed, gold rose 5.6%, while Nasdaq fell 2.1%.

Over the past few years, investors have gotten used to treating BTC as a high-beta tech stock. When US equities enter a 'risk-on' mode, BTC surges along with them; when US stocks tighten liquidity, BTC usually falls even faster.

But this time, the pattern is different. Since August 17, both BTC and gold have strengthened simultaneously, while Nasdaq remains flat.

In fact, since May, the 60-day rolling correlation coefficient between BTC and gold has been climbing sharply, peaking at 0.636, nearing its historical high (0.64 in November 2020, with a long-term median of just 0.12). At the same time, the correlation coefficient between BTC and Nasdaq has trended downward, hitting a low of 0.13 and currently rebounding to 0.22.