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Bitcoin crash by Nasdaq? – Expert warns of new “dotcom bubble”

 


The correlation between Bitcoin ( BTC ) and the stock market has been a hot topic again in the last few days, with one expert even fearing that the dot-com bubble could even repeat itself in the crypto market.


Experienced trader Peter Brandt expressed the same concern on Twitter yesterday, April 22, when he pointed out that the important stock index Nasdaq 100 (NDX) is currently showing a similar constellation as twenty years ago.


"And daily greets the déjà-vu"

In 2022, the correlation between Bitcoin and the stock market will be particularly high, with BTC/USD seeming particularly connected to the said NDX , which of course the most important experts in the industry have also noticed.


And with the stock market already coming under severe pressure from current central bank monetary policies desperate to rein in massive inflation, observers worry the crypto market could now face the same fate.


Brandt, known in the crypto community for predicting some of Bitcoin's key bottoms, is now warning that the Nasdaq is currently behaving much like it did in 2000, at the peak of the dot-com bubble.


Looking at a price chart that shows the similarities between then and now, Brandt says: "And daily greets the déjà vu."

Again, data from Cointelegraph Markets Pro and TradingView underscore how closely Bitcoin price has tracked the NDX this year.


The April 21 stock market crash already had an immediate impact on Bitcoin, with the crypto market leader dipping back below the psychologically important $40,000 mark, which is now back to offering massive resistance and very likely result in further losses.


Just one more year?

However, not all experts are convinced that the correlation between Bitcoin and stocks will last for long.


William Clemente, Blockware's chief analyst, believes that this apparent causal connection will be resolved in less than a year.


"I'll commit and say that within the next 12 months we will see a decoupling between Bitcoin and the stock market once the shift is complete," the crypto expert said. To which he adds :


"Once that happens, the impact will be noticeable and very empowering."

With this "shift," Clemente alludes to the fact that large parts of BTC's supply will gradually migrate from "traditional financial institutions to genuine crypto investors, wealthy individuals and forward-thinking institutions." This would in turn remove the correlation between the two financial products and Bitcoin would be independent.


"The boring sideways movement we're seeing now is what I believe is the equilibrium phase of this shift," the analyst said on April 18.

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