BTC/USD vs. NASDAQ, the relationship between Bitcoin (BTC) and the NASDAQ has been a focal point for analysts and investors alike.
Bitcoin price today: Bitcoin has shown a remarkable recovery after a significant selloff earlier in the week. It rebounded from around $89,000 to nearly $98,500 following the release of the Consumer Price Index (CPI) data. This swift recovery comes after the cryptocurrency faced pressures from U.S. jobs data and a stronger dollar, which initially contributed to its decline.
Despite the recent price increase, Bitcoin has experienced three consecutive days of net outflows in exchange-traded funds (ETFs). The largest outflow occurred on Monday, amounting to $284.1 million, followed by another $209.8 million the next day. This trend raises questions about future ETF inflows, especially ahead of the upcoming Trump inauguration.
Recent reports indicate a growing correlation between Bitcoin and the NASDAQ. A study by K33 Research highlights that the link between these two markets has reached its highest level in 2024. This increasing correlation could be influencing the recent outflows from Bitcoin, as institutional investors may view Bitcoin as a hedge within their portfolios.
In a recent interview, VanEck CEO Jan van Eck expressed disappointment over the rising correlation between Bitcoin and the NASDAQ. He emphasized that true diversification should result in minimal correlation over a longer time frame. The implication is that as the correlation increases, the likelihood of outflows may also rise as investors seek diversification.
Looking ahead, there is optimism about the impact of a Trump presidency on the cryptocurrency market. Analysts from CryptoQuant suggest that approximately $520 billion could flow into Bitcoin in 2025, driven by favorable regulatory conditions and economic policies. This potential influx is further supported by Pantera Capital, which believes that Trump's inauguration could propel Bitcoin to new heights.
From a technical perspective, Bitcoin is at a pivotal point, having recently broken the 50-day moving average. It is now testing key resistance levels, including the psychological $100,000 mark. A failure to maintain this upward momentum could result in a retreat to previous support levels around $95,000 and $90,000.
Support and Resistance Levels
Support Levels: $97,500, $95,000, $91,804
Resistance Levels: $100,000, $102,261, $103,647
Bitcoin's recent recovery highlights its volatility and the complexities of its correlation with the NASDAQ. As ETF outflows continue and the political landscape shifts, investors remain cautious yet optimistic about potential capital inflows in 2025. Monitoring these dynamics will be crucial for understanding Bitcoin's future trajectory in the ever-evolving crypto market.
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