BTC Slips Under $90K After Reaching $93.4K—Is the Nasdaq-to-S&P 500 Ratio a Clue?

Bitcoin Retreats Below $90K After $93.4K Peak, Echoing Nasdaq-to-S&P 500 Trends

After touching an all-time high of $93,445 late Wednesday, bitcoin (BTC) has slipped back below the key $90,000 mark—a level tied to a trendline connecting the cryptocurrency’s twin peaks from 2021. Analysts are eyeing this trendline as a critical resistance zone for the market.

Interestingly, bitcoin’s movements appear to be mirroring the Nasdaq-to-S&P 500 (NDX/SPX) ratio, which serves as a barometer for investor appetite in traditional tech and emerging markets. This correlation has been a recurring theme since 2017, with the NDX/SPX ratio often leading bitcoin’s price trends.

In April 2023, CoinDesk noted this connection when the NDX/SPX ratio was climbing steadily, signaling bullish momentum for BTC as it traded below $30,000. The ratio reached a new high by July, pushing past its 2021 peak trendline, which coincided with bitcoin’s ascent.

Since then, however, the NDX/SPX ratio has retraced below its trendline, and bitcoin’s price has followed suit, struggling to stay above $90,000. Current trends in the options market also point to a period of consolidation.

That said, the long-term outlook remains optimistic. A resurgence in the NDX/SPX ratio could serve as a bullish signal for bitcoin, paving the way for a move beyond the six-figure threshold. With many traders already positioning for a breakout, the interplay between traditional market indicators and crypto trends continues to hold the key to BTC’s next big move.