A potential decoupling scenario between Bitcoin (BTC) and the Nasdaq Composite can push BTC price to reach $100,000 within 24 months, according to Tuur Demeester, founder of Adamant Capital.
Bitcoin outperforms tech stocks
Demeester depicted Bitcoin’s growing market valuation against the tech-heavy U.S. stock market index, highlighting its ability to break out every time after a period of strong consolidation.
“It may do so again within the coming 24 months,” he wrote, citing the attached chart below.
BTC/USD vs. Nasdaq Composite weekly price chart. Source: Tuur Demeester, StockCharts.com
BTC’s price has grown from a mere $0.06 to as high as $69,000 more than a decade after its introduction to the market, as per data tracked by the BraveNewCoin Liquid Index for Bitcoin (BLX).
BTC/USD versus Nasdaq Composite monthly price chart. Source: TradingView
That amounted to around a 64.50 million percent increase in Bitcoin’s price since 2010. In comparison, Nasdaq’s returns in the same period come to be nearly 650% — from 20.99 points on June 22, 2020, to 171.54 as of Feb. 18, 2022. As a result, Bitcoin’s market cap has grown to $755 billion compared to Nasdaq’s $28.68 billion.
Will Bitcoin decouple from tech stocks again?
Bitcoin’s history so far has witnessed multiple periods of its strong correlation with U.S. tech stocks. For instance, earlier this month, the cryptocurrency’s correlation efficiency with Nasdaq reached 0.73, almost near its five-year high of 0.74 in 2020, as per data from Bloomberg.
Bitcoin and tech stocks price performance since. September 2017. Source: Bloomberg
BTC’s price per token dropped from its record high of $69,000 to below $33,000 last month amid a selloff across broader risk-on markets. The decline was accompanied by the Federal Reserve’s decision to aggressively raise benchmark rates against rising consumer prices, which reached their four-decade high in January 2022.
Matthew Sigel, head of digital assets research at VanEck Associates, anticipated Bitcoin to fall alongside Nasdaq and other U.S. stock indexes, albeit more severe. However, he notes that Bitcoin’s volatility has been in a…