Stifel warns that Bitcoin is signaling an imminent stock market sell-off.

Bitcoin’s 10% sell-off since June 7 is a warning sign for the broader stock market, according to Stifel strategist Barry Bannister. In a Wednesday note, Bannister pointed to the strong correlation between Bitcoin and the Nasdaq 100 since 2020, noting that Bitcoin behaves more like a speculative risk-on asset than “digital gold.”

Despite Bitcoin’s decline in June to around $65,000, the broader stock market has continued to reach new record highs, driven by gains in mega-cap tech stocks like Nvidia and Apple. Bannister’s note suggests that Bitcoin’s failure to achieve new record highs indicates that the stock market is likely to follow suit and decline in line with the cryptocurrency.