Bitcoin News Today: Bitcoin's Price Linked to Nasdaq Volatility Warns Economist

Bitcoin’s future appears increasingly contingent on the stability of the Nasdaq, according to top economist Henrik Zeberg, who issued a cautionary note on August 10, 2025. Zeberg argues that Bitcoin’s recent rally is closely tied to the performance of the U.S. stock market, particularly the Nasdaq, which has been driven by high-growth technology stocks. This interdependence suggests that any downturn in equities could trigger a sharp correction in the cryptocurrency market [1].

The economist emphasized that the current U.S. market cap-to-GDP ratio is above historical averages, signaling potential overvaluation and increased risk of a market pullback. Should this occur, Bitcoin—despite its recent surge above $110,000—would likely follow suit, as its performance is not immune to broader financial market trends. “Bitcoin has mirrored the rise and fall of high-growth tech stocks,” Zeberg stated, highlighting its sensitivity to Nasdaq volatility. This dynamic undermines Bitcoin’s status as a traditional safe-haven asset and reinforces its exposure to stock market fluctuations [1].

Zeberg’s analysis further suggests that Bitcoin’s price trajectory is not standalone but rather reflects the broader economic and financial environment. A significant correction in equities—particularly in the technology sector—could lead to a cascading effect across crypto markets, as investors reallocate capital away from risk assets. This view aligns with recent market behavior, where Bitcoin has closely tracked the Nasdaq’s movements, both upwards and downwards. As a result, the stability of the U.S. stock market becomes a critical factor in determining Bitcoin’s near-term prospects [1].

The warnings come amid ongoing debates about the role of cryptocurrencies in diversified investment portfolios. While some view Bitcoin as a hedge against traditional market risks, Zeberg’s insights challenge this perception. Instead, his analysis reinforces the idea that cryptocurrencies remain highly correlated with equities, particularly in periods of market optimism or panic. This close relationship introduces new layers of risk for investors who may have expected Bitcoin to behave differently from traditional assets [1].

Investors are advised to remain cautious, as the current market conditions suggest that Bitcoin’s resilience is largely supported by the Nasdaq’s strength. Any signs of a slowdown or correction in the U.S. equity market could expose the vulnerabilities of the cryptocurrency market. In particular, the tech sector’s influence over Bitcoin’s price means that high-growth stocks and crypto assets may continue to move in tandem, amplifying both gains and losses [1].

Source: [1] Bitcoin’s Future May Depend on Nasdaq Stability, Economist Cautions (https://en.coinotag.com/bitcoins-future-may-depend-on-nasdaq-stability-economist-cautions/)