Katie Stockton, the innovative creator and leader at Fairlead Strategies, maintains the viewpoint that the broader equities market and Bitcoin (BTC) are currently experiencing a bull market phase.
During a recent appearance on CNBC’s ‘Squawk Box’, Stockton discussed her perspective on the market. Comparing the current market conditions to those of three weeks ago, she expressed, “We experienced a minor setback, but that has mostly been resolved on the upside for the S&P. It hasn’t completely resolved yet, but we are very close to that point. The breakthrough is likely to happen with a strong opening above 5440, which we have been using as a reference point for potential stop loss on the upside.”
Despite concerns raised by some analysts about the unusually low volatility in recent weeks possibly signaling an impending downturn, Stockton believes that the support system remains robust. She anticipates a potential surge in the market as the period of low volatility subsides.
In addition to discussing the equities market, Stockton also touched upon the implications for Bitcoin in light of the Federal Reserve’s decision to maintain interest rates and hint at a single cut possibly in 2024. She noted the increasing correlation between Bitcoin and the Nasdaq 100, suggesting that investors now perceive both as risk assets.
While Bitcoin has faced challenges after reaching peak levels in March, Stockton remains optimistic about the future prospects for both Bitcoin and equities. Despite the current divergence between Bitcoin’s lack of upward momentum and the Nasdaq 100’s upward trajectory, Fairlead Strategies believes that there is still potential for growth in both markets.
As of Monday, Bitcoin was trading around $65,200 at 12:25 pm ET.