Bitcoin's Nascent Correlation with the Stock Market May Be About to Snap, Warns Macro Strategist Luke Gromen

President Trump May Trigger De-Correlation Between Bitcoin and the NASDAQ, According to Macro Guru Luke Gromen

In a recent interview with CNBC, macro guru Luke Gromen suggested that President Trump's potential actions could trigger a de-correlation between Bitcoin and the NASDAQ. Gromen is a well-known macro strategist and founder of Arbiter Global, a macro research firm.

Gromen believes that the current correlation between Bitcoin and the NASDAQ is a result of the massive influx of institutional investors entering the cryptocurrency market. He notes that these investors are primarily focused on the technology and growth aspects of Bitcoin, which has led to a strong correlation with the NASDAQ.

However, Gromen warns that if President Trump were to take certain actions, such as imposing tariffs or making significant changes to the Federal Reserve's monetary policy, it could trigger a de-correlation between Bitcoin and the NASDAQ. This de-correlation, according to Gromen, would be a result of the different risk profiles and market dynamics of the two assets.

Gromen's comments come as the cryptocurrency market continues to experience significant volatility. Bitcoin, in particular, has seen its price fluctuate wildly in recent weeks, with some analysts predicting a potential correction in the coming months.

It is worth noting that Gromen's views on the potential de-correlation between Bitcoin and the NASDAQ are not universally held. Other analysts and experts have expressed differing opinions on the matter, and it remains to be seen how the market will react to any potential changes in the macroeconomic environment.

In any event, Gromen's comments serve as a reminder of the complex and interconnected nature of the financial markets, and the potential for unexpected events to have far-reaching impacts on asset prices.