A few weeks ago in mid-October, I noticed that Bitcoin and the Dow Jones Industrials were the same number, approximately $34,000. These two digits are unrelated, so at first, I thought I was being ridiculous to even think there might be any correlation. I noticed it again in early November, so I thought I’d start comparing the two and I quickly nailed-down a website BTCdj.xyz so I’d have a place to post and share my thoughts as well as solicit ideas from others who may think there may be correlation.
The idea isn’t completely crazy. For decades, savvy investors and average Joes have been investing in the Dow Jones Industrials as a method to grow their hard-earned money by investing in stocks and bonds and plan for a secure retirement. Fast forward, there is a new kid on the block and her name is Bitcoin. Born in 2009, Bitcoin is a digital currency and something that generations younger than mine seem to believe in.
Seemingly, as the ratio grows from its current appx 1.085 toward the number 2, I’d suspect this represents a growing acceptance in cryptocurrency becoming more mainstream as either an investment alternative and/or a protection mechanism for stock market volatility.
For now, let’s just see how the two correlate, if at all. I’ll be posting the BTC/DJ Ratio weekly on my rudimentary website BTCdj.xyz so stay tuned and let me know what you think.