Economic Expert: Bitcoin is Threatened with Collapse Alongside Nasdaq if the Technology Bubble Bursts
Danish economist Henrik Sieberg predicts that the price of Bitcoin (BTC) will sharply decline if the Nasdaq 100 index, which is based on technology stocks, experiences a major correction.
He explained that Bitcoin does not possess intrinsic privacy; rather, it is classified as a high-risk asset that is affected by liquidity and market conditions, similar to technology stocks.
Sieberg pointed out that the U.S. markets are experiencing a bubble that exceeds what was witnessed before the 2007 crisis, as the market capitalization to GDP ratio has surpassed historical levels.
According to him, the correlation between Bitcoin and Nasdaq makes sense, given their connection to technology and their performance being dependent on risk appetite.
He warned that a new technology bubble is forming, and that Bitcoin will be part of this potential collapse, urging traders to avoid the euphoria of the bubble.
This comes as Nasdaq reaches a historic peak of 21,464 points, and Bitcoin approaches a new high as the price of the currency is currently trading around $118,120.#BinanceSquare $BNB