Bitcoin Slips Below $90K After Reaching $93.4K, Echoing Nasdaq-to-S&P 500 Risk Sentiment
Bitcoin (BTC) surged to a historic high of $93,445 late Wednesday before pulling back to trade under the pivotal $90,000 level. This price point aligns with a resistance trendline formed by bitcoin’s twin peaks in 2021, a critical indicator for traders.
The cryptocurrency’s movement appears to mirror the Nasdaq-to-S&P 500 (NDX/SPX) ratio, often used as a measure of investor appetite for risk in tech and growth sectors. Since 2017, bitcoin’s price trajectory has closely followed shifts in this ratio, with CoinDesk spotlighting the correlation in early 2023 when BTC was under $30,000.
Earlier this year, a rally in the NDX/SPX ratio pushed it to new highs above its 2021 trendline, fueling bitcoin’s bullish breakout. However, the ratio has since slipped back below that level, and bitcoin’s price action has followed suit, suggesting a period of consolidation.
Market sentiment remains mixed. While options traders show caution, positioning around the $90,000 mark, others are eyeing the next upward move in the NDX/SPX ratio as a potential trigger for bitcoin to breach six figures. Should the correlation hold, BTC’s next major rally could be just one shift in tech-sector sentiment away.
