In a lengthy social media post, Danish economist and financial analyst Henrik Zeberg predicted that the price of Bitcoin (BTC) could crash if the technology-oriented Nasdaq 100 index sees a serious correction.
Zeberg insists that there is nothing inherently special about Bitcoin, claiming that it is a typical risky asset. The analyst is convinced that the US stock market is currently in a serious bubble.
Zeberg noted that the current market capitalization to GDP ratio is even higher than it was before the global financial crisis in 2007.
Why is there a correlation? As reported by U.Today, Bitcoin and Nasdaq tend to have a high correlation because they are considered high-risk assets that generally perform better when there is a risk-on sentiment. They are often influenced by speculative traders who chase large price swings. Both cryptocurrencies and tech stocks are typically very sensitive to liquidity conditions.
Zeberg says that the fact that Bitcoin and tech stocks move in tandem "makes sense" because they are related to technology.
"Tech Bubble" 2 Zeberg is convinced that another tech bubble is currently forming. Moreover, he is convinced that
Bitcoin will be part of this collapse, warning traders not to fall into the 'bubble euphoria.' On August 8, the Nasdaq index reached a new intraday record of 21,464. Bitcoin is also one step away from a new peak, currently trading at 122,000.
