#Bitcoin Correlation to Nasdaq Hits Two-Year High#
Hot Topic Overview
Overview
Recently, the correlation between Bitcoin and the Nasdaq 100 index has reached its highest level in two years, with a 30-day correlation coefficient of approximately 0.70. This means that the price movements of Bitcoin are highly aligned with those of the Nasdaq 100 index, indicating a close relationship between the two. This heightened correlation may be linked to investors' reactions to US inflation data, as inflation figures could influence the Federal Reserve's monetary policy, which in turn affects both the stock market and the cryptocurrency market. Additionally, the upcoming US presidential inauguration could also exacerbate market volatility, with investors hedging against potential downside risks through the options market.
Ace Hot Topic Analysis
Analysis
Recently, the correlation between Bitcoin and the Nasdaq 100 Index has reached its highest level in two years, with a 30-day correlation coefficient of about 0.70. This means that the two are likely to move in sync. This phenomenon suggests that the performance of US tech stocks may have a significant impact on the cryptocurrency market. Analysts point out that the recent impact of US inflation data on interest rates, as well as the Trump-related momentum, could exacerbate market volatility. Vetle Lunde and David Zimmerman, analysts at K33 Research, noted in a report that Wednesday's CPI data will be particularly important. In addition, hedging activity in the options market is increasing, as investors prepare for increased volatility. The rise in bearish bets suggests that investors are hedging against potential downside risks. Overall, the correlation between Bitcoin and the Nasdaq 100 Index reaching a two-year high indicates that the stock market's reaction to US inflation data could set the tone for digital tokens. Investors need to closely monitor market volatility.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The correlation between Bitcoin and the Nasdaq 100 index has reached its highest level in two years, suggesting that the two are moving in sync.
US inflation data will directly impact Bitcoin's price movement.
Investors are becoming more sensitive to interest rates and are closely watching the upcoming CPI data.
Investors are increasing hedging activities to mitigate potential market volatility.