Bitcoin Buyers Should Act Now as Nasdaq Correlation Rises!

Geoffrey Kendrick, the Head of Forex and Digital Assets Research at Standard Chartered, has indicated that Bitcoin (BTC) $107,316 should see a resurgence in purchasing interest due to its increasing correlation with the Nasdaq 100. He emphasized that the sharp decline in Nasdaq 100 futures has led to significant liquidations in the cryptocurrency market. Notably, he pointed out the simultaneous impact of DeepSeek’s competitive product R1 on both technology stocks and Bitcoin. Kendrick reminded listeners that the average buying level for spot Bitcoin ETFs initiated after the U.S. elections is $96,400. He also noted that the Federal Reserve’s upcoming interest rate decision and the tech giants’ financial results could increase volatility risks in the short term.

Why is the Nasdaq 100 and Bitcoin Relationship Important?

Kendrick remarked that Bitcoin has recently moved more in tandem with the Nasdaq 100 rather than gold. Following the Nasdaq 100 futures’ 3.3% drop, the cryptocurrency market experienced liquidations exceeding $1 billion. Nvidia’s 13% pre-market loss highlighted the connection between technology and cryptocurrencies once again.

The primary reason for this correlation is attributed to institutional investors approaching both asset classes with a similar risk perception. Kendrick warned that the upcoming earnings reports from Microsoft, Meta, and Tesla could heighten uncertainty in the market. The Fed’s interest rate decision is also expected to be a significant factor influencing liquidity dynamics.

As of the new trading day, the Nasdaq 100 has risen by 0.08% to 21,184. Meanwhile, Bitcoin has seen a 1.04% increase over the past 24 hours, trading at $103,141.

How Did Trump’s Crypto Executive Order Affect the Market?

Kendrick also evaluated the Trump administration’s statements regarding digital asset stock policy. He expressed disappointment that Trump’s signed crypto executive order failed to emphasize “reserve” over “stock,” leading to market letdowns. The reality that existing regulations cannot advance without Congressional approval has further compounded uncertainty.

However, the analyst argued that recent developments’ negative impact on Bitcoin’s price is temporary. Kendrick reiterated his year-end price targets, forecasting $200,000 for Bitcoin and $10,000 for Ethereum (ETH) $2,514, with expectations that altcoins like Litecoin (LTC) and Uniswap (UNI) might benefit from changes in regulations.