Fairleads Katie Stockton believes that both equities and Bitcoin are still in a bull market cycle
During an appearance on CNBC’s ‘Squawk Box’, Katie Stockton, the founder and managing partner of Fairlead Strategies, expressed her belief that both the broader equities market and Bitcoin (BTC) are currently in a bull market phase.
Comparing the current market situation to that of three weeks ago, Stockton noted, “We experienced a slight pullback, but that has largely been resolved on the upside for the S&P. Although not completely resolved yet, we are very close. A strong open above 5440 is where we anticipate the resolution to occur, so we have been using that as a stop loss on the upside.”
Despite concerns from some analysts about the unusually low volatility in recent weeks possibly foreshadowing a storm, Stockton remains optimistic, stating that support levels are holding strong. She suggests that as the lower volatility period fades, the market might witness a surge to the upside.
Turning her attention to Bitcoin, Stockton pointed out that the Federal Reserve’s decision to maintain interest rates and hint at a potential single cut in 2024 could pose challenges for the cryptocurrency. She highlighted the increasing correlation between Bitcoin and the Nasdaq 100, indicating a shift in investor sentiment towards risk assets like Bitcoin and equities.
Although Bitcoin has struggled following its peak at $73k in March, with the Nasdaq 100 steadily climbing since mid-April, Fairlead Strategies maintains its belief in the ongoing bull market cycles for both Bitcoin and equities. Despite the divergence in momentum between Bitcoin and the Nasdaq 100, Stockton suggests that this gap may narrow in the future.
As of Monday, Bitcoin was trading at around $65,200 at 12:25 pm ET.
