Analyst Predicts Bitcoin Could Drop to $35,000 Following Nasdaq Decline

A significant downturn in the stock market could see Bitcoin's price plummet to $35,000, according to analyst On-Chain Mind. This assessment follows a correlation between Bitcoin's movements and the Nasdaq 100 index, which has been observed since 2019.

The analyst highlighted that Bitcoin's price fluctuations have mirrored those of leveraged tech stocks rather than behaving like the digital gold it was once considered. On-Chain Mind evaluated a scenario where the Nasdaq experiences a typical 23% correction, predicting that Bitcoin could decline around 46% from its current price of approximately $66,000.

"I estimate the probability of this scenario at 20%," the analyst noted.

Historically, Bitcoin's drops during bear markets have been significantly steeper than those of the Nasdaq, although this gap is decreasing as institutional investment increases. Furthermore, On-Chain Mind pointed out that the market cycles are still in play. Currently, it has been roughly 140 days since Bitcoin reached its all-time high, indicating that a definitive market bottom has yet to form.

Long-term holders of Bitcoin seem to face less risk, as statistics show a 45% chance of loss for those holding for a day or a month. In contrast, that risk drops to below 1% for holders keeping their investments for over three years. On-Chain Mind emphasized that success in the crypto market is more likely for those who remain patient rather than those trying to time the market.