Katie Stockton, founder and managing partner at Fairlead Strategies, maintains that both the broader equities market and Bitcoin (BTC) are still in a bull market cycle.

Stockton shared her market insights during an interview on CNBC’s ‘Squawk Box’ on Monday. Discussing the current market outlook compared to three weeks ago, she said:

“We were in a little bit of a pullback but that’s been sort of solved on the upside for the S&P. You know, hasn’t quite resolved yet, [but] almost, we’re very close to that. Where that happens is actually on a strong open above 5440, so we’ve been using that as a bit of a stop loss on the upside.”

Extremely low volatility in recent weeks has led some analysts to warn that the pullbacks may be the “calm before the storm.” However, the Fairlead Strategies founder says support remains intact and the market may see an upward surge as the lower volatility cycle ends.

Bitcoin vs. Nasdaq 100

Stockton also commented on Bitcoin, noting that the Federal Reserve’s decision to hold interest rates and signal for a potential single cut in 2024 could pose challenges for Bitcoin.

“We’ve been watching Bitcoin because the correlation to the Nasdaq 100 has been increasing back to levels that we haven’t seen since 2021. And to me, that’s interesting. It does show that now investors are treating things as a risk asset broadly, right, including Bitcoin, including equities,” she added.

Bitcoin’s price has struggled since reaching highs of $73k in March, while the Nasdaq 100 has been on an upward trend since mid-April.

Despite Bitcoin’s lack of upward momentum and its divergence from the Nasdaq 100, Fairlead Strategies believes both BTC and the stock market could continue to rise.

“We still believe in this bull market cycle for Bitcoin and equities. But we do sense that the divergence will ultimately probably catch up with the Nasdaq 100 Index as soon as people say, ‘wait, a second, Nvidia’s maybe a little bit overstretched here’.”

On Monday, Bitcoin was trading around $65,200 at 12:25 pm ET.

For more updates on the latest trends in cryptocurrencies, investing, and finance, keep exploring Global Crypto News.

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