Bitcoin’s peak could be a harbinger of a stock market top next, Stifel says

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A bitcoin top could signal trouble for stocks – and a shift in market leadership, according to Stifel.

According to Barry Bannister, Stifel's chief equity strategist, there's evidence the cryptocurrency may be peaking, which could lead to a pullback in investor sentiment, weaker Big Tech stocks, and a rotation into value, he said in a note Wednesday. "Bitcoin & Nasdaq 100 reflect the speculative fever fostered by cheap money after dovish Fed pivots, such as occurred 4Q 2023," Bannister said.

Bitcoin hit a new all-time high on March 14 after running up 71% since the start of the year, and has been trading in a roughly 7% range since then as investors take profits and digest the recent gains. Shortly after, on March 28, the S & P 500 reached a new intraday all-time high . .SPX YTD mountain S & P 500, YTD If was indeed its peak, that could mean a weaker Nasdaq 100 for six months, Bannister said.

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Bitcoin top is not a good sign for the stock marketBitcoin top is not a good sign for the stock market - Stifel
Fuente: Investingcom - 🏆 450. / 53 Leer más »