Over the last years percentage basis, there is an interesting correlation. Detailed below. (And yes, similar numbers on the YTD, just a bit cleaner to look at this way).

1 – Last time we had a dislocation of this level on a percentage basis, it was late July 2021… The result? When it did turn around, it did so with a vengeance.

2 – At peak dislocation of 23%, the following eight days recorded the following performances: SPX +4% / BTC +34.5%.

3 – We are currently at ~20% dislocation… and have been negative for almost two months straight. (Historical feat).

What I expect to see from this is a hard outperformance from BTC and cryptos relative to SPX when Mr. Market decides to give the Bears a break from their dominance. Wouldn’t be surprised to see an ~8:1 ourperformance for BTCvsSPX similar to last time here. So a +3% SPX , I would expect to see something like ~+24% BTC .

Is it this week? Next? Not sure, but I am done looking for shorts for now.

Edu only!