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What do Bitcoin and Avocado Have in Common? Analyst Explains

Avocado Bitcoin BTC

As earlier observed, there was a high statistical coincidence that Bitcoin follows Avocado prices. The result? Avocado-based model first forwarded by Tracy Alloway, an Executive Editor at Bloomberg, sensationally hinting that prices of the digital asset were positively correlated to a tangible, unexpected fruit, the Mexican Hass avocado. According to her model, Bitcoin had more ground to lose as the prices of the two unrelated commodities were significantly mirroring each other. 

Bitcoin and Avocado

Although this synchrony was but a strange statistical coincidence, and another reason for Bitcoin price speculation, of which BTC is not short of, the decline of avocado prices seems to have spelled doom on Bitcoin prices. Blasted all over the media, the price of the world’s most valuable cryptocurrency is now trading at 6-months low. And kicker is that it could sink lower, but not Avocado prices.

Avocado is seen as a healthy fruit and Americans can’t get enough of them. Statistics indicate that the US imports over 750 million Kgs of the prized fruit to supplement homegrown volumes.

Avocado BTC prices
Global Avocado prices

On average, over 21 million Avocados are eaten every hour. This partly explains why despite earlier troubles, prices are up 10% year-to-date, trading at $2.93 per KG.

Avocado Price South Africa
Avocado Price in South Africa

The demand is even higher in South Africa where it retails at $1.52, up 23.6% in the last month.

The Correlation is Broken

The correlation seems to have been broken after Mexico bowed to pressure, putting measures in place to curb the flow of illegal immigrants from Central America into the US. That decision alone eased pressure on Mexico’s green gold and prices rebounded after a slump, briefly mirroring that of Bitcoin.

The Trump administration had threatened to slap a 5% tariff on all Mexican imports if nothing was done to stem the flow of illegal immigration. Mexico deployed over 25,000 National Guard along its borders with the US and increased their raid on people traffickers.

Bitcoin’s Brightness

Bitcoin could be disintegrating and falling to unexpected levels, but there is a catch. Some weak miners have been shaken out but fundamental events will prop BTC prices going forward.

Key among them is the increasing economic uncertainty ahead of next year’s US election, Brexit and the US-China trade deal. Any geographic instability could shift capital to BTC, a censorship resistant digital store of value.

The post What do Bitcoin and Avocado Have in Common? Analyst Explains appeared first on Coingape.



Source: What do Bitcoin and Avocado Have in Common? Analyst Explains

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