U.S. technology stocks, based on the Nasdaq Composite index, rose 7% while BTC fell 7% in the second quarter.
Hedge fund Crypto Fund predicts #BTC could amplify disappointing third-quarter results.
#ЛюбимыйТокен [BTC] failed to outperform U. S. stocks in the second quarter, and that trend could continue in the third quarter.
According to Quinn Thompson, founder and CIO of #cryptocurrency hedge fund Lekker Capital, the negative correlation between BTC and major U. S. tech stocks could intensify in the coming weeks.
The Nasdaq Composite index tracks major U. S. technology stocks. The correlation between the index and BTC is typically tracked using the Pearson BTC correlation.
Interestingly, while BTC fell to $65K, the index hit a record high. According to Thompson, the correlation may decline due to unfavorable macroeconomic conditions based on the Fed's hawkish stance (shown by the red arrow).
Should we bet on U. S. stocks or BTC?
Overall, BTC has outperformed U. S. stocks over the past seven years. The royal coin maintained its position in the first quarter of 2024, rising 67%.
However, gold and U. S. bonds "outperformed" the largest digital assets in the second quarter of 2024.
According to a recent Bloomberg report, JP Morgan analysts are "skeptical" about the current pace of cryptocurrency inflows, which will continue until the end of 2024.
At the time of publication, BTC was down nearly 7% in the second quarter. In contrast, the Nasdaq Composite Index (IXIC) and the S&P 500 Index (SPX) were up 7.7% and 3.4%, respectively.
Thompson predicts that if the divergence between BTC and U. S. tech stocks continues, U. S. tech stocks will maintain their advantage over the "King Coin" over the next month or so.
Nevertheless, since the beginning of the year, BTC has posted double-digit growth rates compared to the single-digit growth rates of the U. S. index.
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