Macro investor Luke Gromen suggests that recent developments from the White House could lead to a significant shift in Bitcoin (BTC) trading dynamics.
In a fresh interview with Natalie Brunell on the Coin Stories podcast, Gromen highlights the America First Investment Policy, a memo issued by the Trump Administration in February. This initiative aims to make foreign investment practices in the US more cautious and focused on national security.
According to Gromen, who is the founder of the macroeconomic research firm Forest for the Trees (FFTT), the memo effectively tells China to “take your money and go home, we don’t want it here anymore.”
As foreign capital currently invested in US markets may lead to capital outflows from indices like the Nasdaq, Gromen believes that Bitcoin, functioning as a neutral global asset free from tariffs or political influences, will prosper, ultimately decoupling from Nasdaq’s fluctuations.
“I think this will serve as a catalyst for the divergence between Bitcoin and Nasdaq, which is likely contributing to Nasdaq’s decline – there’s still room for that to drop due to high multiples – and in the short term, the movements are dictated by traders…
While I understand Bitcoin is a leveraged form of Nasdaq, a high-beta alternative in the short term, if you look back at a five- or ten-year chart, you can clearly see instances where Bitcoin has greatly outperformed Nasdaq. However, they still move in tandem; when Bitcoin rises, Nasdaq tends to rise, and vice versa…
I believe the America First Investment Policy memo will begin to break that correlation. Right now, in the short term, the correlation remains intact, but eventually, I think capital flows will recognize Bitcoin as a neutral reserve asset tied to energy, immune to government control, drawing some investment away from Nasdaq, particularly as America conveys, ‘If you want to invest in factories here, fantastic; otherwise, please leave.’
This results in a significant amount of capital needing to exit, and we’re already witnessing the benefits to gold. I believe the trends we observe in gold are a precursor to what we will experience with Bitcoin.”
As of now, Bitcoin is valued at $83,233.
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Disclaimer: The views expressed in The Daily Hodl are not investment advice. Investors should conduct their own research before engaging in any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Be aware that any transfers and trades are conducted at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets and is not an investment advisor. Please note that The Daily Hodl engages in affiliate marketing.
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