Brian Kelly Weighs In on Correlation Bitcoin and Nasdaq
During his Wednesday appearance on CNBC’s “Fast Money,” hedge fund manager Brian Kelly predicted that both Bitcoin and the Nasdaq could bottom out in early 2022:
As we look into Q1 of 2022, we gonna get a bottom in both Bitcoin and the Nasdaq, and they may trade higher together.
Kelly notes that the correction between Bitcoin and institutional markets keeps growing due to the fact that the largest cryptocurrency is seeing broader institutional adoption.He also points to the fact that Bitcoin tends to lead the tech-heavy stock market index.
Crypto [email protected] shares the chart pointing to #Bitcoin as a leading indicator for the market. pic.twitter.com/k0OxYHNl9G— CNBC's Fast Money (@CNBCFastMoney) December 22, 2021
As reported by U.Today, Galaxy Digital CEO Mike Novogratz recently opined that Bitcoin would fail to go higher in early 2022 due to a possible correction in the U.S. stock market. According to a recent Bankrate’s survey, an overwhelming 70% of the respondents expect the S&P 500 index to go down.Central banks moving to tighten their monetary policy is believed to be one of the key reasons behind the recent correction in crypto and stocks. The Fed recently signaled that there would be multiple rate hikes in 2022.Source