Yann Allemann, co-founder of blockchain analytics firm Glassnode, highlighted a trend that cryptocurrencies tend to get a boost after a period of stagnation on the Nasdaq.
This observation suggests that during periods of poor performance by the Nasdaq, investors may be shifting funds to riskier assets, namely cryptocurrencies.
Allemann traced the trend back to 2019, noting that it took 186 days for the Nasdaq 100 to return to the 7,600 level, a sign linked to pre-recession fears.
Bitcoin, on the other hand, took about 220 days to hit the $6,500 mark. However, according to Allemann, once Bitcoin started to climb, it outperformed Nasdaq by a wide margin, subsequently causing the trend to transfer to other digital assets such as Ethereum (ETH), Solana (SOL), Doge coin (DOGE) and NFT.
Glassnode co-founder Yann Allemann has a keen eye for market dynamics, illuminating a noteworthy pattern following the Nasdaq downturn.
It appears that cryptocurrencies tend to find themselves on the receiving end of a much-needed boost during periods of stagnation in prominent stock indexes. Allemann’s analysis suggests that this particular trend stems from investors seeking riskier assets as they look for alternatives to the underperforming Nasdaq.
Allemann noted based on historical data that it took a staggering 186 days for the Nasdaq 100 to regain ground at the 7,600 level, a harbinger of pre-recession worries. By comparison, Bitcoin reached the $6,500 milestone in about 220 days.
However, once Bitcoin was on an upward trajectory, it consistently outperformed Nasdaq, triggering a chain reaction that spread to the wider digital asset market.
After the lackluster performance on the Nasdaq, a peculiar pattern emerged that highlighted the resilience and appeal of cryptocurrencies as a viable investment option.
Glassnode co-founder Yann Allemann took to social media to shed light on the phenomenon, highlighting the surge in cryptocurrencies following periods of stagnation in the famous stock index.
Allemann’s observations suggest that investors seeking riskier opportunities during times of Nasdaq’s underperformance have often shifted funds to cryptocurrencies.
This trend, dating back to 2019, has significant implications for the investment outlook and serves as an indicator of market sentiment in times of economic uncertainty.