Bitcoin-NASDAQ Correlation Plunges as Dowd Sees Potential for NASDAQ Collapse
Edward Dowd, a former BlackRock manager and math-driven investor, believes that the correlation between Bitcoin (BTC) and the NASDAQ has significantly decreased since October last year. According to him, the correlation has dropped from near 1.0 to 0.6.
Dowd sees two possible paths for the long-term link between BTC and the NASDAQ to be restored: either a sharp rally in Bitcoin or a decline in the NASDAQ to meet it. Given the stretched valuations of AI stocks and mounting leverage in the system, Dowd bets on the latter.
The current technical analysis shows that Bitcoin is trading at $77248.91 within the Bollinger band with upper resistance at $79269.71 and lower support at $76807.42. The bearish EMA50 at $77527.21 caps price while the EMA200 at $71800.65 offers deeper structural support. The RSI is at 42.05, indicating a neutral level, and the MACD at -290.26 confirms the death cross, suggesting a counter-trend bounce that still needs key levels reclaimed.