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US Nasdaq Index About to "Crash" 📉
When it was at 24K, I reminded everyone on major platforms that US stocks had already topped out. Looking back, all the predictions have come to pass as expected.
The last correction was 25%, and this wave is also expected to be around 25%, so keep an eye on the 18K–20K range for US stocks going forward.
🤌 What impact will a major US stock correction have on cryptocurrencies?
Bitcoin is now equivalent to tech stocks in the US stock market. Over the past year and more, the correlation coefficient between BTC and the Nasdaq has frequently fluctuated between 0.5–0.8, and has even reached 0.7+ multiple times recently. This means when the Nasdaq declines, BTC will very likely follow suit and decline accordingly, rather than being independent or inversely correlated as in the early days.
Logic: Nasdaq crashes → Tech stocks sell-off → Overall risk asset sentiment deteriorates
Summary: In the short term, the crypto market will find it difficult to completely decouple from US stocks unless there are favorable regulatory or policy developments