Bitcoin’s Rising Correlation with Nasdaq – Jeffrey Kendrick
Jeffrey Kendrick from Standard Chartered highlights that Bitcoin is becoming more susceptible to sell-offs tied to technological shifts, as its correlation with the Nasdaq index strengthens. He sees the current price drop as an opportunity to purchase BTC before the market potentially stabilizes.
Kendrick observed that Bitcoin’s correlation with Nasdaq is much stronger than with gold. He pointed out that the recent 3% dip in Nasdaq futures, triggered by the DeepSeek news, led to major liquidations in the cryptocurrency markets. This event deepened the ties between the crypto and tech sectors.
Сheck out: “Bitcoin Falls Below $100K as Ethereum and Solana Tumble Further”
Futures for the Nasdaq 100 declined by 3.3%, and several technology stocks mirrored the drop. Nvidia, for example, saw a 13% drop in premarket trading after the Chinese AI startup DeepSeek launched its R1 model. This model is said to rival OpenAI’s solutions while being far more budget-friendly.
Kendrick cautions that if the Nasdaq drop continues during the U.S. trading session, especially with earnings reports from big companies like Microsoft, Meta, and Tesla on the horizon, along with the Federal Reserve's meeting on Wednesday, Bitcoin could approach significant new levels.
Additionally, Kendrick noted that the average purchase price for Bitcoin ETFs since the U.S. elections is $96,400.
Jeffrey Kendrick on Trump’s Cryptocurrency Executive Order
Kendrick also shared his thoughts on the recent statement from the Trump administration regarding its executive order on cryptocurrencies, which mandates that a working group assess the national reserve of digital assets. He believes this has added further uncertainty to the market.
He voiced his dissatisfaction for two key reasons. First, he argued that the term “reserve” is generally linked to confiscated assets, not those that are purchased. Second, he pointed out that the order has already been carried out, and any additional clarifications or actions will require Congressional approval, which is likely to take some time.
Kendrick believes that the phase of disappointment and confusion is behind us, as the information from the Trump administration has now been made public. This, he asserts, reduces Bitcoin’s risks. He anticipates that the next step will be purchasing on price declines.
In his analysis from last week, Kendrick identified three phases: “when hope dies,” “buy on the dip,” and “alpha-alpha altcoins.” In the second phase, he expects institutional money to play a significant role. He has confirmed target prices of $200,000 for Bitcoin and $10,000 for Ethereum by the end of the year.
Kendrick predicts that the start of the second phase will trigger an “easy” altcoin season, with institutional flows supporting Bitcoin and Ethereum while new winners, such as Litecoin or Uniswap, emerge due to evolving token regulations.
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