Nasdaq Surge Signals Potential Bitcoin Rally to New Highs

The US stock market has surged, while Bitcoin (BTC) and the broader cryptocurrency market face uncertainty and corrections. Despite this, analysts suggest that Nasdaq's recent rise past 26,000 could signal potential new highs for Bitcoin by year-end.

Historical Patterns

Experts at The Bull Theory note that Nasdaq hitting all-time highs often leads to liquidity flow into growth assets like Bitcoin.
Historically, after a Nasdaq high, Bitcoin gains an average of 7% in 30 days, 14% in 60 days, and 25% in 90 days.
This reflects a capital shift from traditional markets to higher-risk assets.

Bitcoin

The current liquidity wave mirrors conditions from previous significant Bitcoin breakouts in 2017, 2020, and 2023. With rate cuts beginning, global capital seeks yield, potentially benefiting Bitcoin.

Potential Breakout Similar to 2020-2021

Analysts observe that the BTC/NASDAQ weekly chart shows a pattern similar to 2020-2021, when Bitcoin outperformed tech stocks.
The October to March period has historically prompted major upward movements for Bitcoin.
A breakout could see Bitcoin gaining significantly compared to the Nasdaq in Q4 2023 and early 2026.

Bitcoin

Bitcoin is currently trading at $113,350, following a 2% correction after briefly surpassing $115,000, remaining 6.5% below its record highs. However, increased market volatility persists, with no clear path ahead.