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Dowd Sees Convergence Trade Setup Between Bitcoin and NASDAQ

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BTC
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Financial analyst Edward Dowd believes that the correlation between Bitcoin and the NASDAQ has broken down since last October. The pair's price fell from nearly parity to around 0.6, with Bitcoin plummeting while equities continued to rise.

Dowd expects fundamentals related to the AI bubble to drive the NASDAQ lower, closing the gap before a policy response sparks a surge in risk assets.

The sequence Dowd envisions is: the NASDAQ cracks first, followed by a recession, and then aggressive Federal Reserve printing that lifts Bitcoin during its own downturn.

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