Stifel said Bitcoin’s all-time high could signal stock price issues and a change in market leadership. Barry Bannister, chief equity strategist at Stifel, says there is evidence that cryptocurrencies may be peaking, leading to a decline in investor sentiment, a decline in big tech stocks and a rotation into value stocks. , he said in a memo Wednesday. “Bitcoin and the Nasdaq 100 reflect the speculative fever fueled by cheap money following a dovish Fed policy change like the one that occurred in Q4 2023,” Bannister said. “If Bitcoin reflects dovish post-Fed euphoria, it’s worth noting that Bitcoin (and its fever) may have peaked.” BTC.CM= YTD Mountain Bitcoin, YTD “Investor enthusiasm for Bitcoin has coincided with extreme equity bullishness, which typically means stock indexes are overbought and susceptible to a pullback,” he said. added. Bitcoin hit a new all-time high on March 14 after rising 71% since the beginning of the year and has since traded in a range of about 7% as investors take profits and digest recent gains. There is. Shortly after, on March 28, the S&P 500 hit a new intraday high. .SPX YTD Mountain S&P 500, if the year-to-date index was really the highest, the Nasdaq 100 he said Bannister could fall for six months. Other impacts he highlighted include a slump in tech giants’ Nasdaq stocks and a downturn in investor sentiment due to year-over-year changes in the S&P 500’s performance. Additionally, the cap-weighted S&P 500 could struggle against the equally-weighted S&P 500 for about six months. “When the equal-weighted S&P 500 index outperforms the S&P 500 index, value tends to outperform growth,” he said. —CNBC’s Michael Bloom contributed reporting.
