Below is a chart and brief excerpt from today's Early Look written by Hedgeye Director of Research Daryl Jones.
But there’s no doubt that these #Quad2 markets can at times feel like we are entering “never never land”. And all that really takes is a serious upside rip in the U.S. dollar. The Bitcoin aficionados saw that more than most with an almost 30% sell off in Bitcoin in 24 hours Sunday thru Monday (albeit after an epic rip to the upside).
To some, a decline in the price of an asset by near 30% is akin to a new bear market. But in the wild world of crypto currencies, it’s not totally clear what a correction of 30% means. Especially after that comes on the heels of a more than doubling of the asset over the last month or so.
But like most asset classes that are priced daily, crypto currencies can be risk managed. To help you in doing so, we’ve introduced a brand new product called Bitcoin Trend Tracker. It highlights daily the math behind what is driving the price of Bitcoin.