Why Bitcoin (and Gold) Is Going Up
I was staring at my phone when something caught my eye. Gold is way up, going parabolic even like a meme coin. The stock market though is down.
For years, Bitcoin has moved in the same direction as stocks generally speaking. When stocks went up, Bitcoin went up. When stocks went down, Bitcoin went down.
Gold (analog Bitcoin), is going parabolic and BTC will follow suit shortly. Something is changing and it could mean big money for those paying attention.
Gemini: Where I buy my Bitcoin.
Trezor: A beginner friendly way to protect your Bitcoin. 10+ years in business, the original Bitcoin hardware wallet.
The Bitcoin Standard: Best introduction on Bitcoin, gold and money.
The Truth Machine Is Speaking
Bitcoin is breaking free from stocks. It's doing its own thing now. Why? Because Bitcoin smells blood in the water.
When I look at Bitcoin's price and compare it to the NASDAQ, I'm seeing something powerful happening. Bitcoin's correlation to stocks is dropping fast.
What does "correlation" mean? Simple.
When two things are highly correlated (closer to 1), they move together, like best friends holding hands.
When they have no correlation (closer to 0), they don't care what the other is doing. They move however they want.
When they're negatively correlated (closer to -1), they do the opposite of each other, like enemies.
Bitcoin has been that best friend to stocks for a long time. But now? That friendship is ending.
Bitcoin: The World's Best Smoke Alarm
Think of Bitcoin as a smoke alarm for money printing. It smells trouble first. Before anyone else knows what's happening, Bitcoin is already reacting.
Why? Because Bitcoin is the only truly free market we have.
No circuit breakers. No market open or close times. No regulators watching over it. No one deciding who can or can't buy it.
Just pure supply and demand, 24/7, worldwide
...and right now, that smoke alarm is going off.
What Is Bitcoin Telling Us?
The financial system is in danger. Don't take my word for it.
The Economist published an article titled "America's financial system came close to the brink."
The article said "chaotic markets threaten to trigger a full-blown crisis."
Then what happened?
- The Federal Reserve said they are "absolutely ready" to help stabilize markets if needed.
- The Treasury Secretary said they have a "big toolkit" for the bond market.
- Banks are getting rules changed so they can buy unlimited government debt.
- Fed officials are calling inflation "transitory" again.
Translation: They're going to print more money. A lot more.
And Bitcoin knows it.
The Pattern Is Clear
This isn't the first time Bitcoin has broken away from stocks. Looking at the data, I can see a pattern:
During normal times, Bitcoin and stocks move together.
But right before big economic shifts? Bitcoin breaks free. It decorrelates. It leads the way.
This happened:
- During COVID (mid-to-late 2020)
- Before FTX collapsed and Silicon Valley Bank failed (late 2021/early 2022)
- When Janet Yellen started printing money again (late 2023/early 2024)
- Right before the 2024 election
And it's happening again now.
Why Does This Matter at All?
Think about what money really is.
Money represents your time, your energy, your work. When you work hard, you get money in return. That money is your stored time and energy.
It's cooperation technology so we can have division of labor function correctly.
Now ask yourself: Where do you want to store that time and energy in? In something someone else has control over, where they can just make more of it at a whim? Enriching themselves, while you have to work for the thing they can just make out of nothing?
Or do you want to store your time and energy in something made out of time and energy itself? Something they can never make more of?
Bitcoin's supply is fixed forever at 21 million. No government, no CEO, no one can make more.
Everything else in the world works by way of if demand goes up, they make more.
That's why when the money printers turn on, Bitcoin performs better than anything else.
What To Do Now
Bitcoin (and gold) is telling us something big is coming. It's the free market speaking the truth, with no filters.
If you've been waiting for a sign, this is it. The smoke alarm is going off. The money printers are warming up.
The Bigger Picture
The U.S. financial system is at a turning point.
For decades, countries like China have exported goods to America and invested their profits back into U.S. assets. This created a massive wealth gap, with asset prices constantly rising while wages stayed flat.
Now that system is changing. Foreign investors are being told to take their money elsewhere. This means less demand for U.S. stocks and real estate.
Where will all that money go instead? Something neutral like Bitcoin and gold.
The money printers are warming up. The bond market is in trouble. Financial authorities are signaling they'll print whatever it takes to avoid collapse.
Bitcoin sees it all coming. That's why it's breaking free from stocks.
It's not too late to pay attention.
Remember: You're never late to Bitcoin. Every day is a new choice about where to store your time and energy.
Choose wisely.
China's Trade Game Plan Explained Simply
According to Jack Mallers (founder of Strike) from the Money Matters podcast, China has been running a smart trade strategy for years:
- China makes almost everything we use daily - our phones, microphones, furniture, clothes, and more
- They export all this stuff to America and other countries
- In return, they receive US dollars - about $1 trillion per year in profit from trading
But here's where it gets interesting...
The Trillion Dollar Question: What Does China Do With All That Money?
You might think China would use these profits to build more stuff in China, help Chinese people, or improve life there.
But they don't do that. Why? 🧐
If China invested all their trade profits back into China, it would make their currency stronger. A stronger currency would make their exports more expensive, which would hurt their exporting businesses.
So instead, China takes those dollars and buys up American assets like stocks, real estate and government debt in the form of Treasury bonds.
How This Creates Problems for Regular People
This strategy creates some big problems. When China pours all this money into US assets, it makes asset prices go up and up.
- Houses cost $20 million that no one actually lives in.
- Stocks keep rising even when companies aren't doing better.
- People "feel" like their getting richer.
Who wins?
People who already own assets - the top 10% who own like what, 90% of the wealth?
Nothing wrong with getting rich through your own efforts, but too long have we lived in a world where people get rich just sitting on their proverbial ass because they own assets.
No proof of work to put it another way.
Who loses?
Regular people who don't own assets. They see everything getting more expensive while their wages stay the same.
This creates the biggest wealth gap in the world.
Trump has basically told foreign investors like China to "take your money and go away." China is being pushed out of US markets and the US is trying to rebuild its ability to make things at home
This creates a new problem.
If China can't put its trade profits into US assets anymore, where will all that money go?
The answer is Gold and Bitcoin.
Gemini: Where I buy my Bitcoin.
Trezor: A beginner friendly way to protect your Bitcoin. 10+ years in business, the original Bitcoin hardware wallet.
The Bitcoin Standard: Best introduction on Bitcoin, gold and money.
Bitcoin vs. Gold: The Ultimate Inflation Hedge
"If inflation is coming, why not just buy gold?"
Gold is good. I won't knock it. Gold has been money for thousands of years.
But Bitcoin is better, here's why:
- Fixed supply: We know exactly how many Bitcoin will ever exist (21 million). Gold's supply increases about 1-2% per year.
- Verifiable: You can instantly verify your Bitcoin ownership. Gold requires specialized testing.
- Portable: You can move billions in Bitcoin with a few keystrokes. Try moving billions in gold.
- Divisible: You can own a fraction of a Bitcoin. Dividing physical gold is impractical.
- Growth potential: Gold's market cap is around $15 trillion. Bitcoin is under $2 trillion. Which one has more room to grow?
Gold's recent outperformance is because central banks are familiar with it. They already own it. It's the easy, safe choice for them.
But the smart money sees the math. Bitcoin's superior properties also make it the ultimate inflation hedge.
What This Means For Your Money
The financial system is changing fast.
For decades, the U.S. has exported dollars and imported goods. Foreign countries took their dollar profits and bought U.S. assets, driving up stock and real estate prices.
That system is breaking down (oh fun!).
Foreign investors are being told to take their money elsewhere. This means less demand for U.S. stocks and real estate.
At the same time, the U.S. government needs to print money to avoid a debt crisis.
This creates the perfect storm for Bitcoin (and gold, but BTC is better):
- Less demand for traditional financial assets.
- More fiat currency in circulation.
- Growing awareness of Bitcoin's fixed supply.
Bitcoin is positioned to capture massive capital flows as this shift happens.
Beyond Price: Bitcoin's Growing Utility
Most people focus only on Bitcoin's price. But something even bigger is happening. Bitcoin is becoming useful infrastructure.
When you can borrow against your Bitcoin, you never need to sell it. This means you can:
- Finance a home purchase
- Fund a business
- Pay for emergencies
- Cover living expenses
All while keeping your Bitcoin exposure.
This is revolutionary. It's like having an asset that grows 50-100% per year that you can also use as collateral.
No other asset offers this combination of growth potential and utility.
Bitcoin Is Decorrelating
It's not just about money printing. It's about a fundamental shift in how the world sees Bitcoin. Bitcoin is graduating from "speculative asset" to "system hedge."
When the entire financial system shows cracks, people don't just want assets that go up with the market. They want assets that survive if the market breaks.
Bitcoin is increasingly seen as financial insurance, a bank in the sky that no one can touch. Protection against the system itself. This is why its correlation is breaking down. It's taking on a new role in portfolios.
Position Yourself Now
With all this information, what should you do?
BUY BITCOIN YOU STUBBORN IDIOT.
First, understand we're witnessing a historic shift. Bitcoin's decorrelation from stocks isn't a temporary blip. It's Bitcoin's true nature emerging.
Second, consider your time horizon. Bitcoin will be volatile as it moves up on an adoption curve. But that volatility will fade away as BTC simply becomes a larger, more widely adopted asst.
Third, think about self-custody. When financial systems get stressed, counterparty risk rises. The safest Bitcoin is Bitcoin you control.
Finally, be patient. Financial shifts of this magnitude take time to play out. What we're seeing is just the beginning.
Gemini: Where I buy my Bitcoin.
Trezor: A beginner friendly way to protect your Bitcoin. 10+ years in business, the original Bitcoin hardware wallet.
The Bitcoin Standard: Best introduction on Bitcoin, gold and money.
Conclusion
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