The future of Bitcoin could be in danger if the Nasdaq 100 undergoes a major slowdown, according to a striking warning of the Danish economist Henrik Zeberg. It warns that Bitcoin, often considered as a high -risk asset and with a high reward, is closely aligned on the wider market focused on technology. As such, a strong correction in the Nasdaq could trigger a significant drop in Bitcoin prices (1).
Zeberg stresses that the US stock market is currently in a bubble type state, the assessments exceeding those seen before the 2007 financial crisis. This is reflected in the market / GDP capitalization ratio, which has climbed to historically high levels. He maintains that such conditions create an environment where speculative trade is endemic and when investors’ feeling changes, the consequences can be serious (1).
The economist highlights the strong correlation between Bitcoin and Nasdaq, noting that the two are considered as “at risk” assets. When the markets are raised by optimism, prices increase, but when the atmosphere becomes negative, they can drop just as quickly. This dynamic is aggravated by liquidity fluctuations, which can amplify price oscillations on the two markets (1).
Zeberg also highlights the close relationship between Bitcoin and the technological sector, noting that cryptocurrency is deeply rooted in the same investment ecosystem. It warns that if the Nasdaq bubble bursts, cryptocurrencies will not be immune to the fallout (1).
Currently, the Nasdaq 100 has reached an intraday summit of 21,464 points, while Bitcoin is negotiated near a summit of $ 118,336. However, Zeberg urges investors to remain cautious, because these peaks could quickly reverse if market conditions deteriorate. He warns against being swept away in the euphoria which often accompanies upward trends, in particular in very speculative environments (1).
The warning underlines the idea that Bitcoin’s performance is closely linked to the broader health in the technological sector. If the Nasdaq undergoes a significant correction, investors could undergo substantial losses not only in traditional actions but also in cryptocurrencies like Bitcoin (1).
Given these risks, investors are advised to pay particular attention to traditional market indicators, including the performance of the NASDAQ, as part of a diversified investment strategy. The current alignment between crypto and traditional markets may not last if wider market conditions change (1).
Source: (1) Bitcoin could dive while Nasdaq bubble bursts, economists are significant warnings (
