"Hmm, what's the same thing, I wonder if you all didn't expect it?"
Bloomberg's Joe Weisenthal thinks the cryptocurrency community is now more focused on sector trends rather than the narrative of how decentralized finance or Web3 will revolutionize traditional finance.
Among the reasons driving the bullish momentum is the rising price even though there are signs of strength in the United States (US) dollar and Treasury yields, compared to 2020 to 2021 when both weakened.
However, one thing that remains the same as the previous bull run is the recent bull run with optimism directed at technology stocks on Wall Street characterized by gains in the ratio between the high-tech Nasdaq 100 Index, the S&P 500 and the NDX-SPX ratio.
This is because Bitcoin (BTC) managed to reach an all-time high of $69,000 after the NDX-SPX ratio set a new lifetime high of 3.6 at the end of January 2024 and it should be noted that the pattern is similar to what was seen between 2020 and 2021.
It's also worth noting how BTC and the NDX-SPX ratio peaked at the end of 2021, but both started to see bearish momentum in the following months that finally declined in December 2022.
So here it can be seen that traders will want to keep a close eye on the NDX-SPX ratio as relative weakness in tech stocks may affect BTC as well as the broader crypto market.
Please note that reduced supply due to the BTC halving event that will take place in April 2024 and increased demand from ETFs will push BTC to continue its climb higher at $150,000.
As of this writing, BTC price has surged by 1.50% to $67,106 in the past 24 hours with a market capitalization of over $1 trillion and a 9.66% gain over the past week.
