Bitcoin Keeps Falling as Stocks Surge: Right Again

Bitcoin keeps sucking. Now the financial media is realizing what I knew and predicted all along: Bitcoin is severely lagging big tech and is inferior as an investment overall. Some recent headlines about the failure of Bitcoin to particulate in the tech surge (gee…I wonder whose blog said this would happen?):

First Mover: Bitcoin Struggles Near $67,000 as Cryptos Lag Behind Stocks.

Bitcoin Lagged While Tech Stocks Soared. Why Cryptos Have More to Worry About.

Bitcoin: Why Are Cryptos Struggling to Keep Up With the Stock Market?

Here’s Why Bitcoin’s Not Keeping Pace With Nasdaq.

For months I was telling people to sell Bitcoin and rotate into stocks.

Lyn Alden: Bitcoin’s Price Could Go To $1 Million Amid Lagging CBDCs Ha ha ha…not going happen. $100k would be a miracle. Bitcoin is too big and bloated to go to $70k let alone $1 million. No disrespect, but she has no idea what she is talking about.

Yet again, we see a recurring trend where the people with the most popularity, the most followers and the biggest newsletters keep being wrong. The smartest person I follow on Twitter for example has under 1k followers…a totally obscure person. The attributes or traits that correlate or select for ‘growing a big newsletter’ does not have much overlap with ‘usefulness or accuracy of insight’.

When you read someone who is smart and has not yet been audience-captured it is refreshing. It’s like there is no bullshit; everything is talking sense.

Think about it: if something is obvious and known, this likely means it is saturated. But there are exceptions, like tech stocks, which despite being huge and known are immune to saturation due to being correlated with underlying economic growth. For the big tech thesis to fail implies a fundamental restructuring or reordering of the world economy in which such companies becomes less relevant, which is exceedingly improbable.

As of posting this, year-to-date, the 3x tech ETFs TECL and TQQQ have finally caught up to Bitcoin, as I said they would:

You can see the huge divergence as tech stocks surge while Bitcoin falls.

My prediction will come true this year, as it did last year too. ‘Big tech’ generates billions in profits and earnings annually. Bitcoin does neither and is just an overhyped energy waste. It’s little surprise investors are finally waking up to this, albeit late.

The past three weeks have been exceptionally profitable for my Bitcoin Method and tech portfolio. Because I run these concurrently and with leverage, returns are magnified more so when simultaneously tech stocks surge and Bitcoin falls. Plotting the account balances with respect to time, the past month is like a vertical line that shoots way up compared to the more gradual sloping line of the past 6 months.

I could have never imagined *this* is the thing I would be doing. Of all the possible things to do or excel at–trading, investing, and forecasting is it. Some kids aspire to be astronauts, firefighters, doctors, or scientists…for me it turned out to be this. At least it pays well and has low rates of occupational injury, unlike being a firefighter.