Over the course of the last year we've seen a lot of posts and articles that explained that crypto is following the stock markets. But what if I told you that Bitcoin is actually leading stocks in predicting major tops or bottoms?
As seen on the chart above, I've mapped the last ~5 years of BTC and the SP500. For every major bottom and top, Bitcoin arrived there earlier than the SP500, which makes it a leading indicator. In other words; once BTC reversed from an extremity, the stock market followed soon thereafter. Note that stocks followed BTC much quicker after bottoming as opposed to topping.
There can be a multitude of reasons for this. One of the best reasons for this that I can think of is that Bitcoin is one of the purest bets on global liquidity expansion. So when the macro conditions influencing global liquidity change, it will be the first one to react.
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