Bitcoin News Today: Economist Warns Tech Bubble 2 Could Crash Nasdaq and Bitcoin in Sync

Generated by AI AgentCoin World
Sunday, Aug 10, 2025 6:06 am ET1min read
BTC
--
Aime RobotAime Summary

- Economist Henrik Zeberg warns Bitcoin and Nasdaq face synchronized risks due to shared speculative dynamics and investor sentiment alignment.

- He argues both assets mirror each other's volatility, rising during optimism and collapsing together amid economic uncertainty.

- Current U.S. market valuation (226% GDP ratio) exceeds 2007 crisis levels, signaling unsustainable "Tech Bubble 2" conditions.

- Zeberg cautions investors against "bubble euphoria" as both markets trade near record highs with historically overvalued structures.

Economist Henrik Zeberg has raised concerns about the synchronized risks facing both

Bitcoin
and the Nasdaq, warning that a potential burst of the so-called "Tech Bubble 2" could trigger a sharp correction in both markets. In a detailed post on X, Zeberg argues that Bitcoin is not an isolated or special asset but rather a highly speculative one that mirrors the performance of the tech-heavy index [1].

According to Zeberg, Bitcoin and the Nasdaq share a close relationship due to their similar responses to investor sentiment and liquidity conditions. During periods of optimism and risk-taking, both tend to rise sharply; during times of economic uncertainty or fear, they often fall in unison [1]. He described Bitcoin as a "highly risk-prone asset," emphasizing that its price movements are closely aligned with those of tech stocks rather than diverging from them [1].

Zeberg’s analysis points to the current overvaluation of the U.S. stock market, particularly as reflected by the market capitalization-to-GDP ratio, which has reached a level exceeding 226%—a level seen before the 2007–2008 financial crisis. He suggests that even if the Nasdaq were to return to 2022 levels, the market would still remain overvalued by historical standards [1]. This, he argues, signals an unsustainable market structure.

The economist has coined the term "Tech Bubble 2" to describe the current conditions, warning that a correction in the tech sector could lead to a significant and rapid decline in Bitcoin’s price. He cautions investors to be wary of being caught in a "bubble euphoria," especially as both the Nasdaq and Bitcoin currently trade near record highs [1]. As of the time of his analysis, the Nasdaq had reached an intraday high of 21,464, while Bitcoin hovered near $118,336 [1].

Zeberg’s warning highlights the interconnected nature of risk-on assets and suggests that investors may need to rethink their strategies if macroeconomic conditions shift. His view adds to the ongoing debate about whether Bitcoin should be considered part of the broader tech ecosystem rather than a separate asset class.

Source: [1] Here's how 'Nasdaq bubble burst' will 'crater Bitcoin' (https://finbold.com/heres-how-nasdaq-bubble-burst-will-crater-bitcoin/)