Bitcoin News Today: Bitcoin's Price Tied to Nasdaq Volatility Amid Market Overvaluation Risks

Generated by AI AgentCoin World
Sunday, Aug 10, 2025 7:06 am ET1min read
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- Economist Henrik Zeberg warns Bitcoin’s price is closely tied to the Nasdaq 100 index, behaving as a risk-on asset aligned with high-growth tech stocks.

- The strong correlation means a Nasdaq downturn could trigger sharp Bitcoin declines, contradicting its traditional role as a financial stability hedge.

- Overvalued U.S. markets (with a GDP ratio exceeding 2007 crisis levels) raise risks of corrections that could drag cryptocurrencies into synchronized bearish phases.

- Bitcoin’s historical mirroring of Nasdaq performance weakens its safe-haven potential, exposing it to same volatility as traditional equities.

- Investors viewing Bitcoin as a stock market buffer may be misled, as interdependence with tech-heavy indices creates fragile resilience amid macroeconomic shifts.

Bitcoin’s price remains exposed to the volatility of the U.S. equity market, particularly the Nasdaq 100 index, according to economist Henrik Zeberg, whose analysis on August 10, 2025, highlighted growing concerns about a potential market correction and its implications for cryptocurrencies [1]. Zeberg observed that

Bitcoin
has increasingly behaved like a risk-on asset, closely aligned with high-growth technology stocks, which contradicts its traditional image as a hedge against financial instability. This alignment suggests that a downturn in the Nasdaq could trigger a sharp decline in Bitcoin as well [1].

The correlation between Bitcoin and the Nasdaq stems from their shared appeal to speculative investors seeking high returns in a low-interest-rate environment. As both assets are sensitive to market sentiment, they tend to rise together during bullish periods but may also fall in unison during bearish phases [1]. Zeberg warned that the U.S. stock market is currently overvalued, with a market capitalization-to-GDP ratio exceeding levels seen prior to the 2007 financial crisis. This raises the risk of a significant correction, which could drag Bitcoin prices down with it [1].

Furthermore, the economist emphasized that Bitcoin’s price has historically mirrored the performance of the Nasdaq, particularly in response to macroeconomic factors and investor behavior. This interdependence weakens Bitcoin’s potential as a true safe-haven asset and exposes it to the same volatility that affects traditional equities [1]. As a result, investors who view Bitcoin as a buffer against stock market risks may be misled, given the current market conditions.

The warning serves as a reminder that Bitcoin’s future is not isolated from broader financial dynamics. A sharp pullback in the tech-heavy Nasdaq could lead to a cascading sell-off in crypto markets, especially if investors begin reallocating capital away from high-risk assets. Given the strong link between the two markets, Bitcoin’s resilience may be more fragile than many assume [1].

Source: [1] Bitcoin’s Future May Depend on Nasdaq Stability, Economist Cautions (https://en.coinotag.com/bitcoins-future-may-depend-on-nasdaq-stability-economist-cautions/)