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A Nasdaq Bubble is Forming, Crypto Market May Be Affected, Expert Says
Summary: Ned Davis, the Wall Street veteran who has operated the namesake research firm since 1980, believes data has shown excessive optimism, according to Bloomberg. Davis claimed that the Nasdaq 100 looks “bubbly” to him, noting that it’s a highly possible sign of “climbing up a high diving board for speculation”. For there has been ...
Ned Davis, the Wall Street veteran who has operated the namesake research firm since 1980, believes data has shown excessive optimism, according to Bloomberg.
Davis claimed that the Nasdaq 100 looks “bubbly” to him, noting that it’s a highly possible sign of “climbing up a high diving board for speculation”. For there has been a high correlation between Bitcoin and S&P 500 since March 2020, the bubble could sabotage the crypto market.
Since tech stocks account for about 50% of the Nasdaq Composite Index, Lisa Abramowicz, a business reporter from Bloomberg, suggested as follows: “Tech valuations are the most extreme they’ve been since the 2000 tech bubble, based on the ratio of Nasdaq to small-cap stocks.”
The bearish outlook in the stock market could trigger BTC price to fall in the short-term, but some traders see fundamental factors, such as the persistent confidence among crypto investors, that could back a rally in the medium-term.
By Lily Yang
Tags: BTC,Stock Market
Link: A Nasdaq Bubble is Forming, Crypto Market May Be Affected, Expert Says [Copy]
