Bitcoin and tech stocks price performance since. September 2017. Source: Bloomberg<\/em><\/figcaption><\/figure>\nBTC’s price per token dropped from its record high of $69,000 to below $33,000 last month amid a selloff across broader risk-on markets. The decline was accompanied by the Federal Reserve’s decision to aggressively raise benchmark rates against rising consumer prices, which reached their four-decade high in January 2022.<\/p>\n
Matthew Sigel,\u00a0head of digital assets research at VanEck Associates, anticipated Bitcoin to fall alongside Nasdaq and other U.S. stock indexes, albeit more severe. However, he notes that Bitcoin’s volatility has been in a downtrend in recent years. In comparison, Nasdaq 100 has been exhibiting more standard deviation moves than its five-year average. <\/p>\n
The outlook portrays that Bitcoin has been gradually improving to become a dependable safe-haven asset against rising inflation. As a result, its correlation with risk-on assets, such as tech stocks could decline.\u00a0<\/p>\n
Related:\u00a0U.S. inflation breaks 40-year record: Can Bitcoin serve as a hedge asset?<\/em><\/strong><\/p>\n“It’s correlated for now,” said James Butterfill, head of research at data analytics firm CoinShares, told Bloomberg, adding that the cryptocurrency is “quite sensitive to rising interest rates” fears. He noted:<\/p>\n
“But what happens in a situation where you have a policy mistake, i.e. the Fed hikes too aggressively, for instance, or they don’t hike aggressively enough, and there’s an inflation problem. That would actually probably be much more supportive of Bitcoin and less supportive for equities.”<\/p><\/blockquote>\n
Additionally, Joey Krug, CEO of Pantera Capital \u2014 a crypto-focused hedge fund, anticipates\u00a0the decoupling to happen in the “next number of weeks,” noting that “crypto will begin to trade on its own.”<\/p>\n
That $100K BTC price target<\/h2>\n
Demeester cited Bitcoin’s ability to consolidate around $50,000 despite reeling under the pressure of its correlation with Nasdaq as one of the primary reasons why it could embark on a run-up toward $100,000.<\/p>\n