Nasdaq 100 Priced in Bitcoin (QQQ/BTC)

Think of it this way

Two cars with the same engine. If one pulls away, it was not the engine: it was the driver.

What is Nasdaq 100 Priced in Bitcoin (QQQ/BTC)?

How many bitcoins one Nasdaq 100 point costs. The Nasdaq is the part of the US stock market most sensitive to the price of money, so this pair pits two assets that react to the same thing against each other. That is precisely why it is informative when it moves.

How to read Nasdaq 100 Priced in Bitcoin (QQQ/BTC)

It rises when the Nasdaq outperforms bitcoin; it falls when bitcoin outperforms the Nasdaq. Read the slope, not the level. The Invert button shows it as BTC/QQQ. There is only data on days when both trade.

What Nasdaq 100 Priced in Bitcoin (QQQ/BTC) means for the market

Of the four pairs, this is the one that should move least: both are long-duration assets —their value lies in profits or adoption that have not yet happened— and that is why both suffer when rates rise and both soar when they fall. When this line moves sharply, it is saying that something is separating them for a reason other than rates: a flow specific to bitcoin, a regulatory decision, or corporate earnings pulling the index.

Where the money flows

No money flows through a ratio: it is not a market, it is a division between two prices that are. What is interesting is what disappears when you divide. Both prices are in dollars, so the dollar cancels out: a stretch in which both rise because the dollar weakens leaves this line flat, even though the two series are each rising. What remains is money moving from one asset to the other, with the currency taken out.

What to watch in Nasdaq 100 Priced in Bitcoin (QQQ/BTC)

It is the pair that best separates a bitcoin move from the general move in long-duration assets. If bitcoin rises and this line does not move, nothing has happened to bitcoin: something has happened to rates.

It does not measure liquidity: it measures which of the two assets is getting it.