Major US stock indices hit 52-week highs recently, and the Nasdaq is close to its previous all-time high. Several major components of the index have set new price records, such as Nvidia. But bitcoin and the rest of the cryptocurrency? These risky assets remain stagnant.
In this article, we will explore why BTC boredom could eventually cause the cryptocurrency to explode and overtake the Nasdaq. But before that, the next stop could be around $47,000 per coin.
Capital inflows are filling the cryptocurrency market, but history says they are coming
Capital flows into and out of different assets at different times in the financial markets. Concept Sector rotation in the stock market It indicates that profits in the technology sector at the bottom of the market begin to shift to industries. This shift is already beginning to unfold.
Since crypto is not a sector of the stock market, it is not featured in the sector rotation chart. And although there is less historical evidence, the recent relationship between Nasdaq and Bitcoin certainly points to inflows of technology-related capital into cryptocurrencies.
NDX leads BTC for weeks before the relationship changes | BTCUSD on TradingView.com
The chart above shows that Bitcoin often lags behind the Nasdaq for weeks at a time. Once the divergence ends, BTCUSD climbs up to the NDX and then crosses it to a new speculative peak. This moment may be only weeks away, if the behavior repeats again.
Bitcoin could soon reach $47,000 if you follow the stock market
If the behavior reappears, Bitcoin may be about to start a bullish rally. And if that happens, it’s got a lot of catching up to do, according to the chart below.
A comparable rally would take BTC to $47,000 | BTCUSD on TradingView.com
The Nasdaq is currently trading at 15,000 – the same level it was trading at around the end of March 2022, marking the first major lower high before the bear market began.
If Bitcoin can recover to a similar level and a similar point in time, BTCUSD will be trading soon enough near $47,000 per coin. There is no guarantee that the relationship will follow the same path as the previous cases, but as long as the cryptocurrency does not collapse further, Bitcoin may soon find itself outperforming tech stocks by a significant margin.
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