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 sceptics make fun of the recent plunge below $7k. Acc to @tracyalloway's Avocado-based model Bitcoin has plenty of downside in the months ahead! pic.twitter.com/xtRAq7ra5C
— Holger Zschaepitz (@Schuldensuehner) November 25, 2019
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.
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.
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.
The #Bitcoin industry is not slowing down, not one bit.
This price crash is distraction to rob you of your sats.
Don't be a fwit.
Smart money is buying this blood😏🚀
— Bitcoinhog ⚡🚀100K BTC 2019 🖕Fiat (@bitcoinhog) November 24, 2019
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.
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Source: Coin Gape