These past couple of days, everyone’s been saying that Bitcoin and the US stock market are about to decouple?



Looking back at the trends from the past three or four years, this “decoupling theory” pops up every now and then. The truth is actually pretty simple—BTC’s liquidity is much smaller than that of US stocks.

When the market panics, the lack of depth causes prices to drop even further; but during rebounds, the same amount of capital can push prices even higher.

It’s not that the correlation has disappeared, it’s just that the volatility has been amplified.
BTC0.81%
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just_another_fishvip
· 12-06 20:03
Here we go again? Every time you say you’re going off track, but you still end up following the crowd. Everyone knows that low liquidity makes it easy to crash the price.
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MEVictimvip
· 12-06 20:02
Here we go again? Poor liquidity is just an excuse for getting rekt, huh?
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MEV_Whisperervip
· 12-06 20:01
They're hyping up the "decoupling" theory again. It's always like this, so annoying. That's just how it is with poor liquidity—a small pool is easily dumped. To put it plainly, it's still tied to U.S. stocks, nothing new. You hear this argument three times a year—wake up, everyone. Lack of depth, that's all it is. Don't overthink it.
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digital_archaeologistvip
· 12-06 20:01
Off track theory again? It's always the same line every time, getting tired of it.
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