Bitcoin’s Moves Mirror Nasdaq-to-S&P 500 Ratio as Bulls Eye Six Figures
Bitcoin (BTC) hit a record high of $93,445 late Wednesday before retreating to hover around the crucial $90,000 level, which aligns with a trendline connecting its 2021 twin peaks. This makes $90,000 a pivotal resistance point for traders and analysts alike.
What’s catching attention, though, is how BTC’s price action appears to be tracking the Nasdaq-to-S&P 500 (NDX/SPX) ratio—a widely acknowledged gauge of investor sentiment in traditional and emerging tech sectors. This pattern has persisted since 2017, with the ratio historically leading bitcoin through its cycles of highs and lows.
CoinDesk first highlighted this correlation in April 2023, when the NDX/SPX ratio was on an upward trajectory and bitcoin traded below $30,000. By July, the ratio peaked at a new high, breaching a trendline formed by its own 2021 twin peaks and signaling bullish momentum for BTC. Bitcoin followed suit with its own rally.
Since then, however, the NDX/SPX ratio has slipped back below that critical trendline, mirroring BTC’s current struggle to hold above $90,000. If history repeats itself, bitcoin may remain below this level for the time being, particularly as options market dynamics suggest ongoing consolidation.
Still, there’s a bullish scenario on the horizon. A renewed upward movement in the NDX/SPX ratio could reignite bitcoin’s rally, providing the catalyst for a breakout into six-figure territory. Traders betting on BTC surpassing $100,000 are keeping a close eye on these signals, with the correlation between the two metrics suggesting a critical juncture ahead.
