Macro-strategist thinks Bitcoin’s ‘decoupling’ from the stock market would enable it to flourish


As Bitcoin (BTC) continues to demonstrate resilience in the face of bad circumstances in the larger financial landscape, the attention is rapidly shifting to its use cases and divergence from conventional markets, such as equities, with which experts have often noticed a link.

As stated by Jim Bianco, president of Bianco Research and macro analyst, in an interview with Natalie Brunell for the Coin Stories podcast that was released on November 1, Bitcoin has to create “a true use case” in order to expand and achieve highs on its own, free from the meddling of the conventional market.

Referring to the present link between Bitcoin and conventional markets, Bianco said, “The current market arrangement requires the [money] printer to be reactivated for Bitcoin to return to $70,000, which is not good.”

According to him, the existing use case for digital assets is flawed, as “you purchase them, they appreciate significantly, and then you convert them to TradFi and buy a Lamborghini – that’s essentially all you can do with them today.”

Bianco believed that building a real-world use case and “decoupling” or creating a distinct ecosystem from TradFi would boost the development of the cryptocurrency industry because:

When its own application is developed, “the divergence” and “the correlation” may approach zero; this is desirable because “when the correlation falls to zero, it doesn’t require the [money] printer to build a new high.”

To do so, in his opinion, would need creating “a patent system where [crypto] never exits the system – you pay me in Bitcoin, and then I turn around and use Bitcoin to pay someone else,” something that currently does not exist on a broad scale.

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