Popular analyst Nicholas Merten shared that he has doubts about the crypto asset despite the recent rally in Bitcoin price.
Merten drew attention to the correlation between Bitcoin and the Nasdaq stock index in the video he shared on YouTube. The analyst stated that although the correlation in question is on the rise, the macro environment is unfavorable.
“I have to say for sure that the chart here, the Bitcoin to Nasdaq ratio, is what excites me the most. It’s definitely a positive sign to see we’ve been able to break above the 200-week and 200-day moving averages. But as we saw here on the last trading day, we lost most of those gains. I should see it stay in this region because based on historical data it falls within this range. [25.000 doların üzerine] When we get out, he doesn’t stay here long.
For a riskier asset like Bitcoin, we are in a macro environment where regulators shut them down… our banking infrastructure around these assets is paralyzed as we speak. Where will this liquidity come from?
I’m not saying that retail volume, speculators, general investors can’t pull it up. But we haven’t even seen the typical correction of a typical crypto bear market.”
According to Merten, Bitcoin (BTC) is likely to be crushed by macroeconomic factors in the coming weeks.
“I don’t see how Bitcoin will perform so well in this environment. And until I see Bitcoin break away from the Nasdaq, where it continues to lead, I can’t be too confident.”
At the time of writing, Bitcoin is trading at $26,665, up about 35% since March 10.
You can follow the current price action here.