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Author: Admin | 2025-04-28
As technology, which are more sensitive to rising or falling rate expectations," Gabriel Selby, a research analyst at CF Benchmarks, told CoinDesk in an email.Selby added that as the NDX/SPX ratio is closely tracking the crypto market, it suggests interest-rate expectations are in the driver's seat and the pricing divergence between equities and crypto markets may not be as wide as initially thought.Bitcoin and the NDX/SPX ratio bottomed out in late 2022. (TradingView/CoinDesk) The correlation between bitcoin and the NDX/SPX ratio was consistently positive during the 2022 bear market and between May 2020 and March 2021, when the cryptocurrency rallied nearly tenfold to $60,000.If that's not enough, both have been rallying in lockstep since early January. While bitcoin has risen nearly 70% this year, the ratio is up 11.26%.Bitcoin's pause at around $28,000 since March 22 is consistent with the consolidation in the NDX/SPX ratio.While bitcoin's near-term prospects appear tied to gyrations in the NDX/SPX ratio, it could benefit from fears of fiat currency devaluations over time, according to Acheson."BTC is still (and always will be) a risk asset for traditional investors. It is also likely to be regarded as a safe haven," Acheson said. "We are likely to see continued accumulation from longer-term investors interested in its currency debasement hedge properties, while short-term moves are dictated by shifting theories about what monetary liquidity will do."Omkar GodboleOmkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.X icon
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