Nasdaq correction could drag Bitcoin back to $58,000

Crypto analyst Ben Cowen stated on November 5, 2026, that the Nasdaq Composite has erased all post-midterm gains and that a slide to its summer lows could drag Bitcoin (BTC) back to $58,000.

The $58,000 level sits near Bitcoin’s June low, which Cowen identified as the weakest point of 2026. A retest of this price would effectively erase Bitcoin’s entire rebound from that summer trough.

2018 Market Parallels

Cowen drew a direct comparison to the market conditions of 2018, noting that the S&P 500 gained 2.1% the day after the midterm elections that year. However, he argued that three specific events subsequently drove stocks lower into December 2018.

The first factor was the stance of the Federal Reserve. Federal Reserve Chair Jerome Powell stated in October 2018 that interest rates sat far from the neutral level. Cowen noted that this remark was tied to the S&P 500’s worst month since 2011. In the current market, Cowen observed that investors are pricing in two more rate hikes despite the ongoing tech selloff.

The second factor involved corporate cost pressures. In October 2018, Caterpillar, 3M, and Ford flagged tariff-linked cost pressure, according to Bloomberg. Cowen argues that today’s tariffs similarly add to inflation, keeping the Federal Reserve on a hawkish path.

The third factor was regulatory scrutiny. Cowen said tech stocks reversed in late 2018 as regulators began scrutinizing large platforms. He contends that current fears regarding artificial intelligence now play the same role in the market that regulatory scrutiny did in 2018.

Current Market Conditions

On Thursday, the Dow Jones Industrial Average closed about 1,800 points lower, as reported by ABC. The Nasdaq entered correction territory, defined as a drop of 10% or more from its peak.

Cowen linked the two markets in a follow-up post on X, stating, “If the NASDAQ can go back to the summer lows, then so can Bitcoin.”

Bitcoin has followed big tech lower in previous selloffs. An earlier Big Tech selloff pulled Bitcoin toward $62,000 in June. In contrast, Morgan Stanley strategist Mike Wilson has described any midterm dip as a buying opportunity, according to an earlier Q4 report.

Cowen acknowledged that the 2018 analogy could break if the Federal Reserve softens its stance. He noted that Powell shifted to a dovish tone in late November 2018. BlackRock managing director Jeffrey Rosenberg stated that Fed Chair Kevin Warsh links tighter financial conditions to AI. The Federal Reserve held rates at 3.75% to 4% last week.