With the NASDAQ 100 pushing to new highs, Bitcoin is shedding one of its key headwinds. Historically, when the NASDAQ 100 delivers below-average returns, Bitcoin tends to struggle: gains are capped and the risk of large drawdowns increases. That’s been the case for much of this year. But now, the NASDAQ is back above its long-term average 12-month return and still climbing. That creates a much more supportive backdrop for Bitcoin.

Bitcoin isn’t an uncorrelated asset. Over the past five years, it has closely followed the major trends in risk-on assets. So strong performance from growth stocks and improving sentiment are promising signs for Bitcoin as well. Follow @ecoinometrics for more data-driven insights on Bitcoin and macro.