Why Nasdaq hit a record high may be an increase in Bitcoin demand
Bitcoin prices continue to fail to break through $10,000 and hold. The last consecutive daily closing price of the cryptocurrency was above a critical level before the collapse of Black Thursday in February 2020.
During that time, the Nasdaq Composite Index and other major stock indexes hit record highs. In the past week, Nasdaq set another new record, which may indicate that Bitcoin will eventually break through $10,000, maintain and eventually set a new higher price.
Black Thursday was discredited: the Nasdaq Composite Index (NDX), a new high
last week, despite widespread riots and protests across the United States, the Dow Jones Industrial Average, the S&P 500 Index and the Nasdaq Composite Index The major stock indexes all rebounded sharply.
Although the Dow Jones Industrial Average and the S&P 500 index both rose to the highest point set in February, each index failed to set a new record.
At the same time, the Nasdaq Composite Index and the Nasdaq 100 (NDX) both set new historical high prices.
Investors are speculating whether the continued economic growth and record-breaking unemployment rate are due to stimulus measures, continued short-term squeeze, or the market is completely irrational.
According to the stock market, the panic selling and pandemic on Black Thursday never seemed to happen.
Bitcoin price also rebounded strongly from the extremely low level set in mid-March, showing a V shape.
Just as Black Thursday plunged the stock market and precious metals, Bitcoin and other crypto asset classes fell by 50% or more. Some altcoins even collapsed to near zero.
The soaring stock market may be a breakthrough in the
decline in demand for Bitcoin, which has opened the closest connection between the cryptocurrency and the stock market. Since then, Bitcoin has maintained relative ties.
Most comparisons have been made with the S&P 500 index, but this cryptocurrency has proven its near-term correlation with technology stocks (NDX is flooded with this correlation) all the way to closing candles every day.
However, BTC USD lags behind these technology stocks, which may indicate that leading crypto assets by market capitalization will also soon reach higher highs, just like Nasdaq and NDX.
This does not necessarily mean that Bitcoin will hit a new historical high like Nasdaq, but this may indicate the next higher new high.
The higher high bitcoin price will be the first high since the June 2019 high of $14,000. This may also be an obvious breakthrough for a triangle of nearly three years.
Breaking through the triangle, although clearing $10,000-despite the entire stock market setting a new record-may be the boost in Bitcoin demand that the next bull market will eventually begin.