Bitcoin a (Mis)Leading Indicator for NASDAQ?

If you ever discover a truly leading indicator, then you have discovered the goose that will keep laying those golden eggs. IF. What you wouldn't do, is blab about it on some TV show.

Brian Kelly Weighs In on Correlation Between Bitcoin and Nasdaq.

I have also seen periods in which Bitcoin and NASDAQ enjoy a merry waltz. But as one of the other talking heads says, these are trading trends and not really investment indicators. It is fairly obvious at times that profits are shuffled between tech stocks (more likely derivatives) and crypto coins (also now available as derivatives). One dance does not make a ball.

One thing some seem to have forgotten is the idea of diversification. The focus on BTC is missing the real play over 2021, which has been the persistent fall in Bitcoin's dominance of the crypto market. have you diversified into ETH or LUNA or SOL or ADA or LINK or... see!?

So, perhaps worth looking at the correlation between crypto market cap and NASDAQ. Just an idea.

Dow Jones Launches Three New Crypto Indexes

and ...

The Crypto Recalibration

Since writing that article, BTC Dominance has fallen from around 65% to the current 40%. Also, the ETH/BTC rate has gone from about 0.030 to the current 0.080 - not actually its ATH, but that was some time ago and for different reasons.

You know the trick - stare at something long enough and you fail to see what's happening in the background.