Part 7/10:
Another vital point concerns the relationship between Bitcoin and traditional assets like stocks. Bitcoin, viewed as a risk asset, often declines ahead of stock market downturns. The host demonstrates how Bitcoin's current valuation relative to the S&P 500 mirrors 2019—a period marked by Bitcoin weakness even as stocks remained relatively stable until a crash eventually occurred.
Historically, Bitcoin's recovery has followed stock market weakness, as macroeconomic conditions shift. This suggests that for Bitcoin to breakout from its current downtrend, a correction in equities might be necessary—a pattern that has repeated over previous cycles.