Nasdaq is one of the biggest stock exchange markets in America. Nasdaq 100 (NDX) was found to be exhibiting similarities between now and twenty years ago. It was highlighted via Twitter on the 22nd of April by Peter Brandt, who is a popular trader.
A warning bell has been rung regarding the Dotcom Bubble getting repeated in the year 2022. The correlation of stock markets is getting scrutinized all over again.
Nasdaq recently attached itself with bitcoin and equities of the US. This has not yet been passed by the leading names in the industry. BTC also is particularly showing itself as highly correlatable to USD this year.
Due to the inflation-curbing policies of the Central Bank, the stocks are landing under pressure. The main concern of the immediate hour is that the future for crypto is not at all rosy.
Nasdaq’s Resonating Performance Was Termed As ‘Déjà Vu By Peter Brandt
Peter Brandt predicted some of the biggest price drops of Bitcoin and gained attention. Brandt is currently of the opinion that the same trend from 2000 is being resonated by Nasdaq.
Brandt also posted an illustration pointing out the similarities in structures and calling it “déjà vu all over again”.
The selling off of the stock has resulted in an immediate and knocking impact on BTC dipping to a low of 40,000 U.S dollars on 21st April. This continues to pose a threat to the Wall Street Open that is scheduled on the 22nd of April.
However, it is not believable for everyone that the correlated fate of Bitcoin will last for an extended period.
William Clemente is the head analyst of insights at Blockware. He referred to the BTC transfers as perceived by him depending on the decorrelation records between BTC and stocks. He was confident about the decorrelation to take place in the upcoming years.
Trading or Investments always entail risk factors. One should conduct their research and take up decisions.