Renowned economist Henrik Zeberg has cautioned that Bitcoin faces significant downside risk should the Nasdaq stock index experience a correction. Both assets share classification as risk-on investments driven by speculative trading, potentially exposing them to simultaneous downturns.
Zeberg highlighted that the U.S. stock market currently shows characteristics of a substantial bubble. Key indicators, including the market capitalization-to-GDP ratio, exceed levels observed prior to the 2007 financial crisis, signaling potential vulnerability.
The economist emphasized Bitcoin’s strong price correlation with the Nasdaq 100 index, noting both attract similar investor profiles seeking high-risk, high-reward opportunities. This interconnection means weakness in tech stocks could rapidly spread to cryptocurrency markets.
Should the speculated tech bubble burst, Zeberg anticipates adverse impacts across speculative assets including Bitcoin, elevating the probability of a broad market correction. The warning underscores the shared vulnerability of tech equities and digital assets during macroeconomic turbulence.