• Investor Chris Burniske says the crypto markets are likely to follow a bullish stock market.
• Data from Glassnode indicates that Bitcoin often rallies when the Nasdaq 100 index (NDX) takes a breather.
• Burniske suggests that capital could rotate into riskier altcoins and other blockchain-based assets.
Crypto Could Catch up to Rallying Stock Market
Investor Chris Burniske, partner at the venture capital firm Placeholder, recently shared his opinion on Twitter indicating that crypto markets may be gearing up to follow in the footsteps of a bullish stock market. According to data from Glassnode founders Jan Happel and Yann Allemann, Bitcoin has rallied several times after the NDX cooled off since 2019.
Bitcoin’s Performance After NDX Stalls
Happel and Allemann point out that in May 2019, Bitcoin outperformed the NDX after it showed signs of bullish exhaustion. In 2020, Bitcoin once again outran the NDX after it stalled. Currently, they believe that Bitcoin is close to outperforming the NDX again as it may be close to marking a local top.
Capital Rotation Into Riskier Plays
Chris Burniske agrees with the sentiment of Happel and Allemann and believes that capital could eventually rotate into riskier altcoins and other blockchain-based assets such as non-fungible tokens (NFTs). At time of writing, Bitcoin is trading for $26,931 – up over 2% in the last 24 hours.
Risk Involved With Crypto Trading
It is important for investors to remember there are inherent risks involved when trading in cryptocurrency or digital assets; investors should do their due diligence before making any high-risk investments in Bitcoin or other cryptocurrencies. Losses incurred by traders are their own responsibility; The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets without consulting an experienced financial professional first.
Conclusion
Data from Glassnode founders suggests that crypto markets could catch up with rallying stock markets soon if capital begins rotating into riskier plays such as altcoins and NFTs; however, traders should always keep risks associated with investing in mind before making any decisions regarding cryptocurrency trading or investments.
