Bitcoin's recent weakness could be signaling an upcoming correction in stocks, according to Stifel's chief equity analyst Barry Bannister.
On Thursday, the S & P 500 briefly touched 5,500 for the first time after notching its most recent record close earlier in the week.
"Weakening bitcoin … signals an imminent S & P 500 summer correction and consolidation phase," he said.
"With the S & P 500 now at the very high end (2 sigma) of bitcoin post-peak cycle overlays since 2011, we have yet another strong signal that an imminent S & P 500 correction is possible."
"Past bubbles since the 19th century indicate the S & P 500 could well rise to ~6,000 at year-end 2024 and then round trip to near where 2024 began five quarters later, by ~1Q26 (S & P 500 ~4,800)."
Persons:
Barry Bannister, Bitcoin, Bannister, CNBC's, it's, Stifel
Organizations:
Nvidia, Nasdaq