Bitcoin Boredom Could Push It Above Nasdaq: Is $47,000 Next?
While major US stock indexes hit fresh 52-week highs and the Nasdaq neared previous all-time highs, the world of cryptocurrencies, including Bitcoin (BTC), appears to be stagnating. In this article, we investigate why this boredom on BTC could eventually lead to a significant spike, potentially overtaking the Nasdaq. However, before that happens, the next target for Bitcoin could be around $47,000 per coin.
Sector Rotation and Technology-Related Capital Flows
Capital flows in financial markets dictate shifts between different assets over time. The concept of sector rotation in the stock market suggests that profits from the technology sector during a market bottom start to shift to other industries, such as industrials. This rotation is already underway.
While crypto is not part of the stock market sector, the recent pattern between Bitcoin and the Nasdaq indicates a flow of technology-related capital into cryptocurrencies. Bitcoin often lagged behind the Nasdaq for a long time but eventually caught up and surpassed it, reaching new speculative peaks. If history repeats itself, this moment could be just weeks away.
Bitcoin’s Potential Chase
If Bitcoin follows the previous pattern, a bullish rally is likely to follow. The chart shows that Bitcoin has significant upgrades to make compared to the Nasdaq. Currently, the Nasdaq is trading around the 15,000 level, similar to where it was in late March 2022, just before the bear market started.
If Bitcoin can recover to comparable levels and timeframes, BTCUSD could soon be trading near $47,000 per coin. While there’s no guarantee that the relationship will reflect past events, as long as the crypto market remains stable, Bitcoin has the potential to outperform tech stocks by a sizeable margin.
As major US stock indexes soar, the lack of Bitcoin activity can actually set the stage for a significant spike. With a potential target of $47,000 per coin, Bitcoin could outperform the Nasdaq. While past performance does not guarantee future results, investors should keep a close watch on cryptocurrency behavior, as it can signal game-changing shifts in market dynamics.
