As a crypto investor with some experience in the market, I share Katie Stockton’s optimistic view on the current bull market cycle for both Bitcoin and the broader equities market. However, I also acknowledge the recent pullbacks and the potential risks of increased volatility as the lower volatility cycle dissipates.
Katie Stockton, the founder and managing partner at Fairlead Strategies, is convinced that both the wider stock market and Bitcoin (BTC) remain in an uptrend or bullish phase.
Stockton shared her view of the market during an interview on CNBC’s ‘Squawk Box’ on Monday.
Highlighting the current market outlook compared to three weeks ago, she said:
“Recently, the S&P experienced a minor setback, but this issue seems to have been addressed with positive market developments. However, it’s not completely resolved yet, and we’re very close to reaching that point. The specific level where this occurs is around 5440. Therefore, we’ve used this as a safety measure for limiting potential gains.”
In the past few weeks, the financial markets have experienced exceptionally low levels of volatility. Some analysts are now issuing cautions, suggesting that these tranquil periods could be the “eye of the hurricane” before significant market disruptions occur.
As a crypto investor, I’d interpret the founder of Fairlead Strategies’ perspective this way: I believe the underlying support in the market is solid, and once the current lower volatility phase fades away, we could be in store for a significant price surge.
Bitcoin vs. Nasdaq 100
Katie Stockton expressed her thoughts on Bitcoin, pointing out that the Federal Reserve’s plan to keep interest rates unchanged with just a possible solitary reduction in 2024 might negatively impact Bitcoin.
As a researcher closely monitoring financial markets, I’ve noticed an intriguing development: the correlation between Bitcoin and the Nasdaq 100 has been on the rise again, reaching levels last seen in 2021. This trend suggests that investors are now viewing both digital currencies and tech equities as risk assets.
The price of Bitcoin has experienced difficulties since peaking at $73,000 in March, whereas the Nasdaq 100 has been advancing steadily since mid-April.
Despite Bitcoin showing no clear signs of growth and its disparity from the Nasdaq 100, Fairlead Strategies maintains that Bitcoin and the stock market could still reach greater heights.
As an analyst, I’m confident in the ongoing bull market cycle for Bitcoin and equities. However, I can’t help but notice a potential divergence between this trend and the Nasdaq 100 Index. It’s only a matter of time before investors start questioning the valuations of tech heavyweights like Nvidia, which could ultimately lead to a correction in the Nasdaq 100 Index.
On Monday, Bitcoin changed hands around $65,200 at 12:25 pm ET.
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2024-06-17 20:00