Overview

Bitcoin (BTC) is poised for a breakout against the Nasdaq 100 Composite, with the current BTC/Nasdaq ratio at 4.96, indicating that nearly five units of Nasdaq are equivalent to one bitcoin’s value. The previous peak was 5.08 during bitcoin’s all-time high exceeding $109,000 in January 2025.

Key Points:

• The BTC/Nasdaq ratio approaches historic highs, with bitcoin down just 6% year-to-date while Nasdaq sees a drop of 15%.
• The strategy outperforms the QQQ ETF in 2025, gaining 6% while QQQ falls by 15%, reflecting bitcoin’s robust performance.

Historically, each cycle has resulted in new ratio highs, evidenced in 2017, 2021, and currently in 2025, illustrating bitcoin’s resilience against Nasdaq fluctuations.

Additional Insights: When compared to ‘Magnificent Seven’ tech stocks, bitcoin still trails by roughly 20% from its February high, indicating that top tech stocks manage to hold their ground better than the overall Nasdaq Composite.

Market Analysis: Strategy (MSTR), a notable player in bitcoin investments, is showcasing better resilience than U.S. tech stocks since joining the QQQ ETF, marking an 11% decline against a 16% drop for the ETF, with MSTR up 6% this year in contrast to QQQ’s fall of 15%.