Part 1 Beginner Why long-term crypto holders borrow against assets instead of selling A strategic guide to liquidity management, capital preservation, and the real tradeoff between selling and borrowing crypto Open guide 
Lumber to gold ratio breaks down, suggesting a risk-off environment
Lumber to gold ratio breakdown a reliable predictor of stock market downturns
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Quick Take
- So far, 2023 has been a good year for Bitcoin and risk assets, with Bitcoin up 71%, Nvidia up 92%, and Meta up 68%.
- The S&P 500 is up 7% while the Nasdaq is up 20%
- However, the lumber-to-gold ratio indicates a risk-off environment, and the stock market has always followed a crash.
Highlighted are the areas where the lumber-to-gold ratio collapsed, and subsequently, the S&P 500 went down.
- 1987 Crash
- 1990 Bear Market
- 2000 Tech Bubble
- 2008 Lehman Crash
- 2011 Summer Crash
- 2018 4Q Correction
- 2020 Covid Crash
As Bitcoin is somewhat correlated to the US stock market this could mean further headwinds for Bitcoin.
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24H Volume $43.76B
