Bitcoin and Equities Still in Bull Market, But Divergence May Cause Trouble

Katie Stockton, founder of Fairlead Strategies, remains optimistic about the bull market cycle for both Bitcoin and equities, despite recent market fluctuations. Stockton, speaking on CNBC's 'Squawk Box', highlighted the recent pullback in the S&P 500, suggesting it's almost resolved and that a strong open above 5440 would confirm the recovery. While low volatility has some analysts concerned, Stockton believes support remains intact and an upside explosion is possible as volatility dissipates.

Stockton also observed the increasing correlation between Bitcoin and the Nasdaq 100, suggesting investors are treating cryptocurrencies as risk assets similar to equities. This could be a concern, as Bitcoin's price has struggled to reach new highs while the Nasdaq 100 has risen since mid-April. Despite this divergence, Fairlead Strategies remains bullish on both Bitcoin and the stock market, but acknowledges the divergence may eventually catch up with the Nasdaq 100 as concerns over valuations arise.

At the time of the interview, Bitcoin was trading around $65,200.