Humans are hardwired to find patterns where they don’t exist.
Back in the day, it was beneficial for our ancestors to picture predators hiding among the leaves, even when they really weren’t there. This Pareidolia kept them safe. Thousands of years on, it makes us terribly susceptible to chart crimes.
One such crime plaguing the Crypto landscape is this idea that “Bitcoin is correlated.”
People argue that these digital assets are having a real consequence on the macro environment.
But the reality is that Bitcoin is far too small a market to have any intermarket relationships at all.