Michaël van de Poppe, founder of MN Trading, observed a significant divergence between the Nasdaq and Bitcoin, noting the tech index's strength compared to the cryptocurrency's weakness. On Wednesday, November 11, van de Poppe posted on X, stating, "I think it has everything to do with liquidity being sucked out of the markets ahead of the upcoming Anthropic IPO." He added, "I don't see much happening before then unless something surprising happens in the markets. If the IPO takes place, just like $SPCX, liquidity will flow back into the crypto assets."
Bitcoin is currently trading at $74,026, down 0.2% over the last 24 hours. The cryptocurrency has seen outflows from spot ETFs recently, with Bitcoin Spot ETFs posting a $95 million outflow for the fourth consecutive day. The Crypto Fear & Greed Index currently sits at 29, indicating 'Fear' in the market. Meanwhile, the Nasdaq Composite is up today, trading at $25,066, reflecting a stronger performance compared to digital assets.
Van de Poppe's view implies that the crypto market's current subdued performance is a temporary condition, linked to capital reallocation in anticipation of a major tech IPO. He suggests that once the Anthropic IPO concludes, liquidity will likely return to digital assets, potentially reversing the current trend of Bitcoin's weakness. Investors might watch for signs of pre-IPO capital shifts and the post-IPO market reaction for crypto assets.
