Ex-Bridgewater Analysts : Quantitative Model Points To Bitcoin As Once In Century Bubble And A Historic Moment To Learn

When conducting a mathematical analysis of bubbles,  Convoy Investments fund managers  Robert Wu and Howard Wang took a look at serial correlations and the role it plays. Their work considers many bubbles, such as the Dutch Tulip price run-up and the resulting dramatic market crash. But their most focused work is in what might is the largest price run-up in history – that of Bitcoin.

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In the value vs momentum market continuum, bitcon is clearly driven by momentum

There are two components that “ultimately determines the propensity for bubble-like behavior.” These components are impulses created by a value approach to investing versus a momentum approach, the former Bridgewater Associates employees note in a December 11th client letter.