Nasdaq has dotcom crash ‘deja vu’ says trader as Bitcoin correlation rises

Nasdaq has dotcom crash 'deja vu' says trader as Bitcoin correlation rises

Bitcoin (BTC) and its stock market correlation are under fresh scrutiny amid warnings of a repeat of the dot-com bubble in 2022.

In an April 22 tweet, popular trader Peter Brandt highlighted the similarities between the Nasdaq 100 (NDX) now and two decades ago.

“Deja Vu”

This year, Bitcoin has shown a high correlation with the U.S. stock market. In particular, BTC/USD recently joined the NDX, while some of the biggest names in the industry did not pass the index.

With stocks themselves under pressure from central bank inflationary policies, there is growing concern that the near-term outlook for cryptocurrencies is anything but rosy.


Brandt himself, who has been in the spotlight for predicting some of Bitcoin’s historical price bottoms, now thinks the Nasdaq itself is echoing its performance in 2000 (the peak of the dot-com bust).

Calling it “déjà vu,” he uploaded a diagram showing structural similarities.

Nasdaq 100 Annotated Chart.Source: Peter Brandt/Twitter

Meanwhile, data from Cointelegraph Markets Pro and TradingView show the pace of Bitcoin and NDX this year.

As Cointelegraph noted, the stock sell-off on April 21 had an immediate knock-on effect on Bitcoin, which briefly dipped below $40,000 and continued to threaten the collapse that opened on Wall Street on April 22.

BTC/USD and NDX charts. Source: TradingView

Running less than a year?

However, narrowing it down, not everyone is convinced that Bitcoin’s related fate will last long.

Related: GBTC premium nears 2022 high as SEC faces call to approve Bitcoin ETF

William Clement, chief insights analyst at mining firm Blockware, made it clear that their relationship ended in less than a year.

“I’m going to say publicly that once this supply transfer is done, I think we’ll see a de-correlation between bitcoin and equities over the next 12 months,” he declared.

“If/when that happens, it’s very reflexive and powerful.”

Clemente was referring to what he sees as a shift in BTC “from related trading traditional financial entities to cryptocurrency natives, high-net-worth individuals and forward-looking institutions.”

He added in an April 18 tweet: “This boring sideways range is the balance of the IMO shift.”

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Every investment and trading move involves risk and you should do your own research when making a decision.

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