Bitcoin Rally Threatened by Nasdaq Correction Amid Tech Bubble Risks
Economist Henrik Zeberg warns that Bitcoin’s rally is at risk if the Nasdaq undergoes a significant correction. With Bitcoin trading above $110,000, its performance shows a strong correlation with high-growth tech stocks, as US market cap-to-GDP ratios now exceed pre-2007 crisis levels. This tech bubble raises the risk of a sharp pullback. A downturn in the Nasdaq could trigger cascading Bitcoin sell-offs and heighten crypto market volatility. Traders should monitor equity indices and market cap-to-GDP metrics, and maintain robust risk-management strategies amid these risk-off scenarios.
Bearish
Zeberg’s warning highlights Bitcoin’s tight correlation with Nasdaq stocks and warns that elevated market cap-to-GDP ratios signal a tech bubble. A sharp Nasdaq correction could trigger cascading sell-offs in Bitcoin, undermine its safe-haven appeal, and increase market volatility. This outlook suggests downward pressure on Bitcoin prices in both the short term—due to panic selling—and the long term—amid broader risk-off sentiment.