- Bitcoin’s price has risen by over 64.50 million percent since 2010.
- It seems like Bitcoin is on its way to becoming a safe-haven asset.
BTC might hit $100,000 within 24 months if the Nasdaq Composite is decoupled from Bitcoin (BTC), Tuur Demeester, founder of Adamant Capital Fund, claims. Demonstrating Bitcoin’s capacity to break out every time following a period of intense consolidation, Demeester used the tech-heavy U.S. stock market index to illustrate its growth.
Correlation With Nasdaq
In the last ten years, Bitcoin’s price has risen from a low of $0.06 to as high as $69,000, as tracked by the BraveNewCoin Liquid Bitcoin Index (BLX). In other words, Bitcoin’s price has risen by over 64.50 million percent since 2010. In contrast, the Nasdaq has returned approximately 650 percent in the same period, rising from 20.99 points on June 22, 2020, to 171.54 points on February 18, 2022. For the first time since Nasdaq was founded, Bitcoin’s market capitalization has surpassed that of Nasdaq’s by more than three times.
There have been many moments in Bitcoin’s history when it has had a high association with U.S. tech equities. According to Bloomberg, the cryptocurrency’s correlation efficiency with the Nasdaq hit 0.73 earlier this month, close to its five-year high of 0.74 in 2020.
A single BTC token price fell from an all-time high of $69,000 to around $33,000 last month as investors fled riskier assets. The Federal Reserve decided to boost benchmark rates rapidly in response to increasing consumer prices, which hit a four-decade high in January 2022. This move followed this drop. It seems like Bitcoin is on its way to becoming a safe-haven asset in the face of growing inflation. Consequently, its association with risky assets like tech stocks may decrease.
