Bitcoin and Beyond Meat stock are trading in a remarkably similar pattern and investors on both sides are unlikely to enjoy the comparison.
Beyond Meat (NASDAQ: BYND) and Bitcoin (BTC/USD) have both enjoyed the strong rally since markets crashed in March. The extent of this similarity needs to be seen to be believed.
As you can see from the below chart, there is an incredible level of similarity between the performance of Beyond Meat and Bitcoin.
What is remarkable is that it isn’t just the last month where BTC/USD has tracked BYND. The similarity in the movements goes back to last year, before the chaos of the coronavirus pandemic.
Crypto-sceptics will not be particularly surprised by the similarity between the two. Both assets are highly volatile, and both are considered wildly overvalued by old-school analysts.
Bitcoin is often accused of being backed by nothing, and Beyond Meat stock suffers from similar accusations of being a bubble.
On the other side of this argument, investors like Jim Cramer believe that BYND could become a giant tech company, and the future of vegan meat is one of the great investment opportunities of our time.
BTC has similar believers, many of whom believe the deflationary asset is the key to navigating an inevitable collapse in the U.S. after decades of Fed printing. Even legendary investor Paul Tudor Jones is now on board the digital gold bandwagon.
It is perhaps disappointing to both Beyond Meat bulls and their Bitcoin counterparts to see each other compared.
Bitcoin enthusiasts have often dreamed as the original cryptocurrency acted is a de-correlated haven asset from the regular financial markets. Unfortunately, this has never looked less accurate as BTC/USD plunged with equities this year.
At the same time, Beyond Meat investors advocate for the value of taking an early position in the destruction of the industrial meat complex.
Of course, it is possible that this is all a big coincidence. Both BYND and Bitcoin have positive story-lines developing. Meat alternatives are growing in popularity, and sales are soaring as the coronavirus has also impacted beef availability in the U.S.
At the same time, Bitcoin is approaching its halving, where supply will be cut in half, and this is widely believed to be a bullish event for the cryptocurrency.
Unfortunately looking at the chart, it appears Wall Street is only looking at risk-on and risk-off for both these trades. It’s hard to tell which camp is going to be more offended.
This article was edited by Samburaj Das.
Last modified: May 9, 2020 3:13 PM UTC