Renowned investor Chris Burniske, known for his accurate prediction of the 2022 bottom for cryptocurrencies, foresees the crypto market following the upward trajectory of the bullish stock market.
In a recent communication with his 261,600 Twitter followers, Burniske, a partner at venture capital firm Placeholder, shares his observations regarding the correlation between crypto rallies and the Nasdaq 100 index (NDX).
Crypto Rallies And NDX: What’s The Correlation?
Citing data from Glassnode founders Jan Happel and Yann Allemann, Burniske points out that Bitcoin (BTC) has experienced significant rallies after periods of NDX cooldown since 2019. This recurring pattern suggests a rotation into higher-risk assets as investors seek alternative opportunities.
Historical Patterns: Bitcoin Outperforms NDX
Happel and Allemann’s analysis reveals that in May 2019 and 2020, Bitcoin outperformed the NDX following signs of bullish exhaustion and an obstacle faced by the index, respectively. Now, the Glassnode co-founders believe Bitcoin is poised for another outperformance as the NDX approaches a potential local top.
Bitcoin’s Impending Surge
Burniske emphasizes the current state of affairs, highlighting that the NDX has reached levels comparable to those in April 2022 (445 days), while Bitcoin has decoupled from it. Drawing from historical patterns, Burniske confidently asserts that Bitcoin is on the verge of an explosive surge, poised to outperform its stock market counterparts.
As of now, Bitcoin is trading at $26,931, reflecting a more than 2% increase in the last 24 hours.
What’s In Store For Altcoins?
Burniske also shares the sentiment expressed by the Glassnode co-founders, suggesting that capital may flow into riskier altcoins and other blockchain-based assets. He envisions a potential progression where the high-risk waterfall begins with the NDX, then shifts to BTC, followed by ETH, SOL, DOGE, and eventually NFTs (non-fungible tokens).
Also Read: Altcoins Can Rally 25% to 30% If Bitcoin Price Surge Above This Crucial Level – Coinpedia Fintech News
Does this correlation surprise you? What’s your take on it? Tell us.
Source: https://coinpedia.org/news/crypto-markets-set-to-surge-alongside-nasdaq-stocks-predicts-investor-chris-burniske/