As is my strange habit, no matter the time zone, I get up at 5 a.m. On the Pacific coast, that’s perfect. Here in EST-land, not so much. In any case, even during this absurd hour, let me share with you an insight. Below is the chart of Ethereum. We know all about crypto, right? Going to change the world with blockchain, smart contracts, and digital currency, yes? Not a chance. Crypto has become nothing more than a proxy for equity enthusiasm. It might as well be the SPY. Honestly. Crypto has almost NO purpose except to serve as just a different flavor of equity ETF, so it merits observation by stock people.
Not convinced? Below I’ve used layered charts to plop the SPY on top of $ETH. They may stray from time to time like wayward planets, but they inevitably clamp right back together.
Here’s one more SPY/ETH chart to show the longer-term correlation, which is just about 1.0
