Nasdaq has dotcom crash 'deja vu' says trader as Bitcoin correlation rises

Bitcoin (BTC) and its banal marketplace correlation are nether caller scrutiny amid a informing that the Dotcom Bubble is repeating itself successful 2022.

In a tweet connected April 22, fashionable trader Peter Brandt highlighted similarities betwixt the Nasdaq 100 (NDX) present and 20 years ago.

"Deja vu each implicit again"

Bitcoin has shown itself to beryllium highly correlated to U.S. equities this year. In particular, BTC/USD precocious became attached to the NDX, thing which has not passed by immoderate of the industry's best-known names.

As stocks themselves travel nether unit from cardinal slope inflation-beating policies, concerns are mounting that the contiguous aboriginal is thing but rosy for crypto.

Brandt, who himself gained attraction for predicting immoderate of Bitcoin's humanities terms bottoms, present believes that the Nasdaq itself is echoing its show from the twelvemonth 2000 — the tallness of the dotcom crash.

Calling it "deja vu each implicit again," helium uploaded a illustration showing the structural similarities.

Nasdaq 100 annotated chart. Source: Peter Brandt/ Twitter

Data from Cointelegraph Markets Pro and TradingView meanwhile shows conscionable however successful measurement Bitcoin and the NDX are this year.

As Cointelegraph noted, Thursday's stocks sell-off had an contiguous knock-on effect connected Bitcoin, which concisely dipped beneath $40,000 and continued to endanger a breakdown connected Friday's Wall Street open.

BTC/USD vs. NDX chart. Source: TradingView

Less than a twelvemonth to run?

Zooming out, however, and not everyone believes Bitcoin's correlated destiny volition past for long.

Related: GBTC premium nears 2022 precocious arsenic SEC faces telephone to o.k. Bitcoin ETF

William Clemente, pb insights expert astatine mining steadfast Blockware, specifically gave their narration little than a twelvemonth to play out.

"Going to spell connected the grounds and accidental that I deliberation we spot a decorrelation betwixt Bitcoin and stocks successful the adjacent 12 months erstwhile this transportation of proviso is complete," helium declared.

"If/when this occurs, it would beryllium rather reflexive and powerful."

Clemente was referring to what helium sees arsenic the transportation of BTC "from correlation trading accepted concern entities to crypto natives, precocious nett worthy individuals, and forward-looking institutions."

"This boring sideways scope is an equilibrium of this transportation IMO," helium added successful a tweet from Monday.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.