Get the scoop on finance - sign up for mobile alerts
Categories: Bitcoin
| On
October 11, 2019

Supply Shock: Bitcoin (BTC) Price Correlation to Avocado Market Goes Viral

By Daily Hodl Staff

Crypto traders are analyzing a lighthearted look at Bitcoin’s correlation with the price of Hass avocados.

ADVERTISEMENT

In a viral tweet, Bloomberg finance journalist Tracy Alloway pits BTC against the price of the popular fruit over the last year.

However unlikely the chances are that a real correlation exists, the two charts line-up surprisingly well.

BTC and avocados bottomed out between November of 2018 and March of 2019, and began rising in early April.

ADVERTISEMENT

The price of avocados rose due to a supply shock, as farmers in California had a rough growing season primarily due to a series of wildfires.

Meanwhile, the scarcity of Bitcoin and its ultimate supply cap of 21 million coins is often linked to its price. And if there are two things Millennials have an above-average affection for, it’s mobile-friendly Bitcoin and avocados on toast.

Millennials have also drawn ire for their love of both BTC and AVO.

Back in January, when the price of Bitcoin was around $3,500, CNBC’s Scott Nations said Millennials who continue to invest in BTC are naive.

“If you are in your 20s, you have never seen an asset bubble. You were a teenager during the housing bubble. You were not even a teenager during the dotcom bubble…

ADVERTISEMENT

Well, baby, this is a bubble. I hope that [young] people don’t lose too much money on Bitcoin, but that they do learn the lesson: This is a bubble, and this is how it unwinds. Unfortunately, it’s a bit painful, but we have not reached the bottom yet.”

Meanwhile, real estate mogul Tim Gurner blames the Millennials’ inability to buy homes on their penchant for avocados, rather than on rising inflation and decreasing salaries.

“When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each.

We’re at a point now where the expectations of younger people are very, very high. They want to eat out every day, they want to travel to Europe every year.

The people that own homes today worked very, very hard for it, saved every dollar, did everything they could to get up the property investment ladder.”

At time of publishing, the price of Bitcoin is $8,554, up 144% since January, according to CoinMarketCap.

As for the average national price of a Hass avocado, it’s now $1.33, according to the U.S. Department of Agriculture.

[the_ad id="42537"] [the_ad id="42536"]
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.