Bitcoin may be trading near record highs, but economist Henrik Zeberg believes its current trajectory is tied too closely to the tech-heavy Nasdaq to be considered a true safe haven.
In his view, the cryptocurrency has been moving in lockstep with the stock index, thriving during market optimism but vulnerable when sentiment turns.
Zeberg points to what he describes as a “second technology bubble,” fueled by investor enthusiasm and soaring valuations.
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He highlights that the U.S. market cap-to-GDP ratio now sits well above historical averages, even surpassing pre-2008 financial crisis levels. Such an overheated environment, he argues, leaves both Bitcoin and equities exposed to a sharp reversal.
Rather than acting independently, Bitcoin has mirrored the rise and fall of high-growth tech stocks over the past few years. This, Zeberg says, makes it highly sensitive to any downturn in the Nasdaq. A major correction in equities—particularly if it coincides with a recession—could trigger a cascading sell-off in crypto.
While current market conditions show Bitcoin holding firm above $110,000 and equities posting fresh highs, Zeberg warns that this phase may represent the final stretch of the rally. For investors caught in the excitement, he cautions, the eventual deflation of the bubble could erase gains far quicker than they were made.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoins-rally-could-collapse-with-nasdaq-top-economist-warns/