Expert Warns: If Nasdaq Collapses, Bitcoin Won't Escape
Bitcoin and Nasdaq: A Dangerous Connection
Although Bitcoin is trading near record highs, economist Henrik Zeberg warns the digital currency is not the “safe haven” many expect.
Bitcoin has moved roughly in tandem with the Nasdaq over the past few years , he said — benefiting from booming tech stocks but also vulnerable to sentiment reversals.
“ Bitcoin now mirrors the rise and fall of high-growth tech stocks, making it extremely sensitive to any Nasdaq decline,” Zeberg said.
The Second Tech Bubble and the Risk of Reversal
Zeberg argues that the market is in the midst of a “second tech bubble ,” fueled by investor euphoria and soaring valuations.
He pointed out that the US market capitalization to GDP ratio is now far above its historical average, even higher than before the 2008 financial crisis .
This overheated environment, according to Zeberg, makes both the stock market and Bitcoin vulnerable to sharp reversals in the event of an economic or psychological shock.
Warning to investors amid euphoria
Currently, both Bitcoin and US stocks are hitting new highs, but Zeberg believes this could just be the end of the bull run .
He warned that if the bubble bursts, asset values could evaporate much faster than they have accumulated over time .
In particular, a deep stock market correction – especially when coinciding with a recession – could trigger a chain reaction of sell-offs in the cryptocurrency market , dragging Bitcoin into a sharp bear cycle.