Part 5/14:
The Broader Financial Landscape: Traditional Markets and Correlations
Contrary to headlines suggesting that NASDAQ is outperforming Bitcoin, charts show that the correlation between the tech-heavy NASDAQ (via QQQ) and Bitcoin remains limited. Over the last 90 days, Bitcoin maintains gains, and despite some divergence, both markets are showcasing different behaviors.
The S&P 500 is close to reaching a new high, while Bitcoin lags behind, highlighting the asset's unique cycle. This divergence indicates that Bitcoin may have heated up too quickly, possibly leading to profit-taking and consolidation before the next leg higher.