I was at a dinner party recently and Bitcoin came up in the context of markets and the economy. Someone shared their theory that cryptocurrency markets were part of the overarching tech bubble that's been developing since the last financial crisis, as reflected by the Nasdaq.
That's an interesting theory, not one I'd considered, though I'm not sure if it's true. I'm also not sure what kind of tech bubble there is, because I vividly recall the internet stock bubble that popped in 2000 and this bull market that we've been in for stocks for the past 11 years doesn't seem to be centered around tech companies in particular.The top Nasdaq companies are Apple, Microsoft, Amazon, Google, Facebook, Intel, etc. The list continues. I'm not saying that it was only tech companies that boomed, just that there has been a tech bubble, and that Bitcoin may have been riding its coattails to some extent. The 1990s boom wasn't completely tech driven either -- the dotcom bubble was just the climax of it all.
Besides, as NeuroticFish has pointed out bitcoin hasn't been correlated strongly with the stock market for any significant length of time anyway. It's had booms and busts several times since 2009 whereas the stock market hadn't had even so much as a big correction until recently--at least none that I can recall.
Bitcoin has only existed during a period of economic prosperity. It has never been through an economic crash. That's what this theory is about, more so than temporary asset correlations.
