Freaky Bitcoin/Avocado Price Correlation Will Guac Your World
CCN Markets: There’s a growing legion of crypto fans who insist that the bitcoin price enjoys a guac-cidental correlation with avocados. Is that coincidence or cosmic fate?
Bloomberg’s Tracy Alloway pointed out the comical correlation on Twitter. After noticing that the price of bitcoin and Hass avocados started uncoupling, she joked, “Sell everything.”
You Have Guac to be Kidding me
Alloway attached a chart that appears to show an uncanny correlation between the price movements of the tasty green fruit and the original cryptocurrency from January until this week.
Bitcoin/Avocado correlation is dead. Sell everything. pic.twitter.com/JKr6nGePsr
— Tracy Alloway (@tracyalloway) August 15, 2019
Crypto Twitter reacted in typical hilarious fashion. One person quipped that it seems “like avocados were a leading indicator.”
Looks to me like avocados were a leading indicator
— panek (@panekkkk) August 15, 2019
Another person joked that he thought “avocados were a safe haven.”
I thought avocados were a safe haven.
— joey (@Joeryegun) August 15, 2019
Bitcoin-Avocado Prices have Mirrored Each other for over a Year
Petrit Selimi, the former Foreign Minister of Kosovo, spotlighted an even longer time horizon.
Selimi’s Twitter chart shows that the bitcoin-avocado price correlation dates all the way back to June 2018.
Surprisingly, this is not the first time that someone at Bloomberg noticed the correlation. Maybe Bloomberg has a guacamole fetish.
In June, Bloomberg’s Joe Weisenthal remarked that avocado prices were going through the roof. At the same time, Weisenthal observed that the price charts of bitcoin and avocados bore a curious resemblance to each other.
— Joe Weisenthal (@TheStalwart) June 26, 2019
Bitcoin and avocados are millennial phenoms
It’s hard to logically argue that this phenomenon is rooted in reality. However, the one thing bitcoin and avocados have in common is the popularity they enjoy among millennials. As CCN reported, a whopping 90% of millennials say they’d rather invest in bitcoin than traditional assets like gold.
Nate Geraci, president of the ETF Store, claims that his millennial clients are clamoring to hold bitcoin in their portfolios — if only the SEC would let them.
“If you talk to millennials and ask them which they prefer — bitcoin or gold — it’s a landslide. It’s not even close. Like 90% prefer bitcoin.”
Is bitcoin a Safe-Haven Asset?
Crypto evangelists have repeatedly claimed that bitcoin’s recent price surge stems from investors increasingly flocking to it as a “safe haven” amid the escalating US-China trade war.
Two weeks ago, Circle CEO Jeremy Allaire made this contention when he praised bitcoin as a reliable store of value during stock market turmoil.
Allaire’s comments echoed the observations of Binance Research, the research arm of crypto exchange Binance. As CCN reported, Binance Research claimed that the most recent bitcoin price rally was due to President Donald Trump’s trade dispute with China.