Bitcoin growth peaks and a possible stock market crash: analysis and forecast
Date: 2024-04-09 Author: Gabriel Deangelo Categories: BLOCKCHAIN
Warning Signs in the Stock Market
Mid-March saw an all-time high in BTC price reaching $73,800, and although this level has not yet been retested, its impact is starting to be felt in financial sectors. Business Insider warns that this could be the start of a bearish cycle for the stock market.
The connection between Bitcoin growth and the stock market
Many strategists on Wall Street see the rise in BTC price as a result of speculative activity spurred by the Fed's loose monetary policy during the pandemic. Stifel strategist Barry Bannister points to a parallel between Bitcoin's rise and changes in Fed policy, which could indicate a possible end to the current bull market.
Analysis of technical indicators
Analysis of the logarithmic chart of the Bitcoin price using a polynomial trend indicates that the token is approaching its “maturity” with major peaks around the $73,000 level. This could spell trouble for the stock market as a whole, especially for technology stocks and the Nasdaq 100 index in the next six months.
Foreseen Consequences
If Bitcoin reaches its peak, we can expect weakening technology stocks and a possible decline in investor sentiment. This could lead to a situation where value stocks outperform growth stocks, which could have a negative impact on the stock market as a whole.
This analysis is based on materials from Business Insider and involves a detailed examination of the relationship between the dynamics of the Bitcoin exchange rate and the stock market.
