Bitcoin-Nasdaq Ratio Dives 62% as ETF Inflows Fuel Rally
The performance gap between Bitcoin and the Nasdaq has narrowed significantly, echoing patterns from previous crypto bear markets. The BTC/Nasdaq ratio dropped 62.2% from its most recent peak, mirroring the scale of prior market bottoms.
Historically, this ratio experienced even deeper pullbacks, with drops of 75.7% in 2018 and 68.5% during the 2021-2022 cycle. The current decline is slightly smaller, yet it already matches previous bear-market lows.
The BTC/Nasdaq ratio reflects relative performance, not Bitcoin's absolute price movement. This means that even if Bitcoin's price drops, the ratio can still narrow significantly as the Nasdaq outperforms.
Earlier this year, the index saw a strong shift in favor of technology equities, leading to increased divergence between Bitcoin and the Nasdaq. However, market dynamics shifted rapidly after June, with Bitcoin recovering from $58,500 at the end of June and surpassing $80,000 in August.