Claim $500Will Nasdaq’s Next Move Affect Bitcoin’s (BTC) Price In The Short Term?
In recent times, the price of Bitcoin (BTC) has maintained a close association with the performance of the stock market in the United States. During periods in which the price of the stock was aggressively rising, the price of bitcoin also rose, however, in a range that was relatively lower. Given this scenario, significant changes in the NASDAQ stock market could create an impact on the prices of cryptocurrencies in the short term.
NASDAQ On The Brink
According to data, the NASDAQ has been above the trend risk support as can be seen from the image below. This trend line has prevented the prices from further declines and has supported it since 2010. However, in the coming weeks, the market would be deciding on the reaction to this trend line.
There have been five instances in the past where this trend line has acted as support for the market.
Read More: Will Bitcoin’s (BTC) Price Hit $100K In 2024? Data Suggests So
In spite of the fact that this trend line has the potential to put an end to the current downward trend and serve as the starting point for a market recovery; the trend line’s support, if in case broken, will indicate that the current downtrend is extremely strong and that the market still has more room to fall.
Bitcoin Mimicking NASDAQ?
Bitcoin, on the other hand, is also currently resting on support at a trend line as can be seen from the figure below.
Given the association between the stock market and Bitcoin, there is possible anticipation of a reversal in the cryptocurrency market if the stock market is supported here. If the stock market is not supported, then analysts expect a continuation of the downward trend.
After the end of 2021 and continuing into the middle of 2022, the price of cryptocurrencies climbed and dropped in a manner comparable to equity prices.
A comparison of the price of Bitcoin (BTC) to that of the S&P 500 (SPX) and the Nasdaq 100 is presented in the following chart (NDX).
BTC Mining Woes
Apart from the stock market correlation, which can pull the price of Bitcoin down, the number one cryptocurrency by marketcap also faces the brunt of a severe bitcoin mining crisis due to the ongoing bear market.
Bitcoin’s hashrate, mining difficulty & possible bankruptcies of mining firms may lead to a dump in BTC price for the short term.
Read More: Will The Slow Down In BTC Mining Hamper Bitcoin’s Short-Term Price?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Crypto Gains New Use Case as Iran Turns to Digital Assets for Weapon Sales
- Bitcoin Could Rally to $170,000 in 2026 If This Happens: CryptoQuant
- Lighter Team Under Fire After Alleged $7.18M LIT Token Dump Post-Airdrop
- Binance Market Maker Hack: Trader Rakes in $1M via Failed BROCCOLI Price Manipulation
- Breaking: UK Begins New Initiative to Crack Down on Crypto Tax Evasion
- Shiba Inu Price Eyes a 45% Rebound as Burn Rate Spikes 10,700%
- Expert Predicts Ethereum Price Rebound to $4k as BitMine, Long-Term Holders Buy
- Bitcoin Price Prediction Ahead of FOMC Minutes
- U.S. Government Shutdown Looms: These 3 Crypto Predictions Could Explode
- Grayscale Files for First U.S. Bittensor ETF: Will TAO Price Rally to $300 in January?
- Shiba Inu Price Prediction: Will SHIB Show Golden Cross Signal in 2026?
