Nasdaq has dotcom crash ‘deja vu’ says dealer as Bitcoin correlation rises

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Bitcoin (BTC) and its inventory marketplace correlation are below contemporary scrutiny amid a caution that the Dotcom Bubble is repeating itself in 2022.

In a tweet on April 22, in style dealer Peter Brandt highlighted similarities between the Nasdaq 100 (NDX) now and 20 years in the past.

“Deja vu everywhere once more”

Bitcoin has proven itself to be highly correlated to U.S. equities this year. In particular, BTC/USD recently became attached to the NDX, which has not passed by some of the industry’s best-known names.

As stocks themselves come under pressure from central bank inflation-beating policies, concerns are mounting that the immediate future is anything but rosy for crypto.

Brandt, who himself gained attention for predicting some of Bitcoin’s historical price bottoms, now believes that the Nasdaq itself is echoing its performance from the year 2000 — the height of the dotcom crash.

Calling it “deja vu all over again,” he uploaded a chart showing the structural similarities.

Nasdaq 100 annotated chart. Source: Peter Brandt/ Twitter

Data from Cointelegraph Markets Pro and TradingView meanwhile shows just how in step Bitcoin and the NDX are this year.

As Cointelegraph noted, April 21’s stock sell-off had an immediate knock-on effect on Bitcoin, which briefly dipped below $40,000 and continued to threaten a breakdown on April 22’s Wall Street open.

BTC/USD vs. NDX chart. Source: TradingView

Less than a year to run?

Zooming out, however, and not everyone believes Bitcoin’s correlated fate will last for long.

Related: GBTC premium nears 2022 high as SEC faces call to approve Bitcoin ETF

William Clemente, lead insights analyst at mining firm Blockware, specifically gave their relationship less than a year to play out.

“Going to go on the record and say that I think we see a decorrelation between Bitcoin and stocks in the next 12 months once this transfer of supply is complete,” he declared.

“If/when this happens, it will be relatively reflexive and strong.”

Clemente was once relating to what he sees because the switch of BTC “from correlation buying and selling conventional finance entities to crypto natives, prime internet price folks and forward-looking establishments.”

“This uninteresting sideways vary is an equilibrium of this switch IMO,” he added in a tweet from April 18.

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