What came first, the Lamborghini or the Bitcoin? It's not exactly an age-old question, but it might have some relevance.
The link between Bitcoin (BTC) and Lamborghinis was previously thought to be a superficial one at best. Individuals who get wealthy from Bitcoin would purchase a Lamborghini as a kind of status symbol. And the entire Bitcoin community ended up seeing it as the status symbol.
However, it appears this link may be deeper than previously realized, after charting platform ChartStart revealed that the number of Reddit mentions on Bitcoin forums for "Lambo"—short for Lamborghini—can sometimes be used as an indicator of Bitcoin price action.
According to the report, which tracks the number of Lambo mentions on Reddit in relation to the Bitcoin price, there has been a spike in mentions preceeding a short rally. Looking at July 2017, the number of Lambo mentions rose considerably before the price saw further bullish action. And later, in October 2019, mentions of the luxury car dropped sharply before the price crashed.
Do "Lambo" mentions reflect a Bitcoin community that's feeling bullish. Image: ChartStar.
However, during the main bull run, Lambo mentions couldn't keep up with price of Bitcoin and were actually a lagging indicator—showing they responded to the price not the other way around.
This isn't the only correlation noticed between Bitcoin prices and worldly goods. Back in October, Decrypt reported on the surprising correlation between avocado prices and the price of Bitcoin. At the time, Bloomberg analyst Tracy Alloway joked that it was the avocados that forewarned her of Bitcoin’s sudden price drop.
Even worse, avocados have recently become so valuable that crime groups have started stealing them—en masse. Better hold onto your Bitcoin.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.