In a previous post, we covered the relationship between Bitcoin, Gold, and TIPS. There is some speculation about another large capitulation in Bitcoin, breaking down to the mid 20ks.
Looking back at the previous Bitcoin cycle, we can see that, at least from an inflationary, macro perspective, the wind should be at our back. Diving deeper into the charts we can draw a comparison to the November ’18 capitulation to see any similarities. Note how TIPS was in a long downtrend before Bitcoin followed suit in early November. This is the polar opposite of what we see today — a clear uptrend and consolidation in TIPS.
If this pattern holds, it means we’re probably mid-consolidation(shown by the middle arrow), or at the beginning of another bull market for Bitcoin.
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