#Bitcoin correlates with Nasdaq to hit a 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 correlation coefficient of around 0.70, indicating a high degree of synchronicity in their movements. This correlation suggests that the stock market's response to US inflation data could influence Bitcoin's price trajectory. Analysts point out that the upcoming Consumer Price Index (CPI) data will have a significant impact on the market, and investors are hedging against potential volatility through options markets.
Ace Hot Topic Analysis
Analysis
The correlation between Bitcoin and the Nasdaq 100 index recently reached its highest level in two years, with a 30-day correlation coefficient of around 0.70, indicating a significant increase in synchronicity between the two. This association suggests that the stock market's response to US inflation data could have a significant impact on the price of digital tokens. Analysts point out that Wednesday's release of the Consumer Price Index (CPI) data will be a key indicator, as the market's sensitivity to interest rates has increased. Additionally, the Trump-related momentum may continue to build in the days leading up to the inauguration, further influencing market movements. Hedge activity in the options market also suggests that investors are preparing for increased volatility, with a rise in bearish bets reflecting concerns about potential downside risks.
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Classic Views
Bitcoin correlation with US tech stocks hits a two-year high, suggesting stock market reaction to US inflation data may influence Bitcoin price.
Bitcoin's 30-day correlation with the Nasdaq 100 Index reached its highest level in two years, indicating a strong relationship between the two.
Investors are preparing for increased volatility, with option market hedging activity on the rise.
Upcoming US inflation data and Trump-related momentum could have a significant impact on Bitcoin price.