Strong correlation between money invested in crypto and value of Nasdaq, says David Buckham

Everyone has opinions about what the market will do in 2024 – and where to look for the signs. But, for David Buckham (author of The End of Money, Why Banks Fail and The Age of Menace) answers can be found in a surprising place: the Nasdaq.

The Nasdaq index can even provide some surprising clues as to what is coming for cryptocurrencies in 2024, says Buckham:

How much?

Just how much money are we talking here? A lot, according to Buckham - and also a lot more than there used to be.

Let's put that amount into perspective quickly. This means that, between 2008 and 2022, the United States' debt increased tenfold.

And let's not forget that $9 trillion is a large amount of money in itself - almost triple the size of the entire GDP of India, the world's fastest-growing economy in 2023.

Cryptos and stocks: the Nasdaq connection

Okay, but what has this got to do with cryptocurrencies and the stock market?

Well, according to Buckham, the amount of money in the Nasdaq is directly correlated to the amount of money funneling into cryptocurrencies - which can be famously opaque and hard to read - especially Bitcoin.

So, when investing into the Nasdaq is high... so is investing in cryptos.

So where is the Nasdaq currently?

The Nasdaq composite index ended 2023 having made gains of more than 40 percent in the year, closing at a price of $15,011.35 on December 29^th. Comparatively, the year before that, the Nasdaq Composite closed out 2022 at a level of $10,466.48 on December 30^th 2022.

This is a YoY increase of over 30 percent (almost $5,000) for the Nasdaq Composite alone.

Meanwhile, the market cap of Nasdaq Inc (owner of the Nasdaq stock exchange) has been hovering at between $33.5 billion and $32.3 billion, up significantly from its market cap of $30.2 billion on January 2^nd 2023.

Read more: What David Buckham has to say about rate hikes in 2024