Blocksmith Says: Crypto Won’t Rally When Nasdaq Falls
Let’s look at Nasdaq futures longer term today just to set the general tone. In the last note, we considered the gaining positive correlation between gold and Bitcoin and that still stands, both are falling in sync. With that said, it doesn’t mean that the relationship with Nasdaq and general risk has vanished.
It’s more or less inconceivable that crypto rallies in a robust and sustained manner while Nasdaq falls and Nasdaq’s price path is down.
The 40-week cycle peak is in and the downswing of this big cycle is young and energetic. This is the tailwind for now. The price path is broadly down and should stay that way for the rest of the year and then some. There will be rallies along the way, but if this thesis is correct they will be squashed back down early and hard.