long Social Media PostsDanish economist and financial analyst Henrik Zeberg predicted that Bitcoin (BTC) prices could crash if the tech-heavy Nasdaq 100 index saw a major fix.
Zeberg argues there is nothing inherently special about Bitcoin, and that it is a typical risk-prone asset.
Analysts believe the US stock market is currently in a big bubble. Zeberg points out that the current market capitalization and GDP ratio are even higher than what was on during the 2007 global financial crisis.
Why there is a correlation
As reported by U.Today, Bitcoin and Nasdaq tend to have a high correlation as they are considered risk-on assets that tend to outperform when there is risk-on sentiment.
They often tend to be driven by speculative traders chasing big price fluctuations.
Both cryptocurrencies and tech stocks tend to be extremely sensitive to liquidity conditions.
Zeberg says Bitcoin and tech stocks are running in tandem.
“High-tech bubble” 2
Zeberg is confident there is yet another technology bubble right now.
Additionally, he is confident that Bitcoin is part of its crash, warning traders are caught up in a “bubble euphoria.”
On August 8, the Nasdaq Index reached 21,464 other Inthay Record High. Bitcoin is also within an impressive distance of the new peak, currently trading at $118,336.
