In his view, the cryptocurrency has been moving in lockstep with the stock index, thriving during market optimism but vulnerable when sentiment turns.
Zeberg points to what he describes as a “second technology bubble,” fueled by investor enthusiasm and soaring valuations.
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He highlights that the U.S. market cap-to-GDP ratio now sits well above historical averages, even surpassing pre-2008 financial crisis levels. Such an overheated environment, he argues, leaves both Bitcoin and equities exposed to a sharp reversal.
Rather than acting independently, Bitcoin has mirrored the rise and fall of high-growth tech stocks over the past few years. This, Zeberg says, makes it highly sensitive to any downturn in the Nasdaq. A major correction in equities—particularly if it coincides with a recession—could trigger a cascading sell-off in crypto.
While current market conditions show Bitcoin holding firm above $110,000 and equities posting fresh highs, Zeberg warns that this phase may represent the final stretch of the rally. For investors caught in the excitement, he cautions, the eventual deflation of the bubble could erase gains far quicker than they were made.
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