Bitcoin Lagging Nasdaq's Growth Dynamics — K33 Research

Over the past month, Bitcoin has lagged the Nasdaq, a tech-heavy index, in 70% of trading sessions. This has only happened a few times since 2020, said Vetle Lunde, head of research at K33 Research.

According to the expert, the leading cryptocurrency is currently approximately 30% weaker in terms of growth dynamics relative to the stock index than it was at the beginning of October.

“Cryptocurrency is closely linked to stock price movements, but it shows sharper declines during downturns and weaker rebounds during periods of growth. This trend reflects persistent selling pressure in the general risk-averse investor environment. Bitcoin's current relative price to other risky assets is significantly at odds with fundamentals,” Lunde explained.

He emphasized that the divergence between short-term and long-term holders has widened in recent weeks. Speculative capital continues to flee the market amid macroeconomic uncertainty, while large investors are maintaining their accumulated Bitcoin holdings and showing no signs of panic.

This creates a situation where short-term fluctuations become sharper, and price recovery occurs significantly slower than expected. To reverse this dynamic, the market requires a clear external signal—either a significant influx of liquidity or a reduction in selling pressure.

Only in this case will Bitcoin be able to narrow the gap in correlation with technology stocks and return to a stronger movement trajectory, the expert concluded.

Previously, experts at XWIN Research stated that this year the crypto market is in a “Zebra Market” phase, when digital asset prices move in sharp, alternating up-and-down pulses, like black and white stripes.

Source: cryptonews.net