Bitcoin News Today: Top Economist Warns Bitcoin Rally Tied to Nasdaq Volatility

Top economist Henrik Zeberg has issued a warning that Bitcoin’s current rally may be dangerously intertwined with the Nasdaq, making it vulnerable to a potential market correction. According to Zeberg, Bitcoin has closely followed the performance of the tech-heavy Nasdaq, with both assets rising during periods of optimism but also exposed to sharp reversals when sentiment shifts [1]. He describes the current market environment as a “second technology bubble,” fueled by investor enthusiasm and inflated valuations that could not be sustained indefinitely.

The U.S. market cap-to-GDP ratio is currently above historical averages, even surpassing levels seen before the 2008 financial crisis. In Zeberg’s view, this suggests that both equities and cryptocurrencies are sitting in an overheated market, where a single downturn could trigger a cascading sell-off [1]. His analysis highlights the lack of independent fundamentals supporting Bitcoin’s rally, pointing to the fact that it has mirrored the rise and fall of high-growth tech stocks over recent years. As a result, any significant correction in the Nasdaq—especially one driven by a broader economic downturn—could have a direct and severe impact on the cryptocurrency [1].

Currently, Bitcoin trades above $110,000, while the Nasdaq continues to set new record highs. The Nasdaq 100, for instance, saw a 3.7% rise in a single week, largely propelled by a 13.3% jump in Apple’s share price. The broader technology sector also saw strong performance, as the Bloomberg MAG7 Index hit an all-time high [4]. However, these gains have not come without concerns. Analysts warn that the market is operating in a fragile environment, with stagflation risks and policy uncertainty creating headwinds [7]. Recent events, such as the removal of the U.S. Bureau of Labor Statistics commissioner, have also introduced uncertainty into corporate earnings forecasts and economic outlooks [2].

Zeberg’s warning comes as investors remain cautiously optimistic about the equity market. While some analysts suggest that equities may still have room to grow, others argue that sentiment remains highly sensitive to new developments. This includes shifting inflation expectations and the broader fiscal challenges posed by rising U.S. debt and new taxation measures [3][9]. Despite these concerns, stocks continue to climb, drawing comparisons to the speculative environments of the past.

For now, Bitcoin and the Nasdaq appear to be on parallel tracks. But as Zeberg has emphasized, this alignment does not suggest a stable or independent trajectory for either asset class. Instead, it signals a synchronized exposure to the same market forces—forces that could, in the near term, trigger a rapid and painful reversal.

Source:

[1] Title: Bitcoin's Rally Could Collapse With Nasdaq, Top Economist Warns

URL: https://coindoo.com/bitcoins-rally-could-collapse-with-nasdaq-top-economist-warns/

[2] Title: Trump's Firing Of The BLS Commissioner Is An Ongoing ...

URL: https://www.aol.com/trump-firing-bls-commissioner-ongoing-130017629.html

[3] Title: Inflation data to test stocks as some investors brace for rally ...

URL: https://www.investing.com/news/economy-news/inflation-data-to-test-stocks-as-some-investors-brace-for-rally-to-pause-4179464

[4] Title: Weekly Commentary: Anything But Normal Times

URL: https://seekingalpha.com/article/4811720-weekly-commentary-anything-but-normal-times?source=feed_symbol_fxi

[7] Title: 'Stagflation is coming to the U.S.,' says this economist. ...

URL: http://www.msn.com/en-us/money/markets/stagflation-is-coming-to-the-u-s-says-this-economist-here-s-what-it-means-for-the-dollar-bonds-and-stocks/ar-AA1K9kTE?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&renderwebcomponents=1&wcseo=1