#Bitcoin Correlation with Nasdaq Spikes#
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 about 0.70, indicating a high degree of synchronicity in their movements. This surge in correlation is primarily driven by US inflation data, as investors react strongly to inflation figures, impacting both the stock market and the digital currency market. Analysts believe that the upcoming Consumer Price Index (CPI) data will have a significant impact on the market, and investors are hedging against potential volatility risks through the options market.
Ace Hot Topic Analysis
Analysis
The correlation between Bitcoin and the Nasdaq 100 index has surged to its highest level in two years, with a 30-day correlation coefficient of roughly 0.70, indicating a high degree of synchronicity in their movements. This phenomenon suggests that the connection between Bitcoin and US tech stocks is strengthening, and stock market reactions to US inflation data could have a significant impact on the digital coin's trajectory. Analysts point out that Wednesday's release of the Consumer Price Index (CPI) data will be particularly important given increased sensitivity to interest rates recently. Moreover, Trump-related momentum could further intensify in the days leading up to the inauguration. Hedge activity in the options market is also increasing, suggesting investors are preparing for increased volatility. The rising proportion of bearish bets reflects investor concerns over potential downside risks.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The correlation between Bitcoin and the Nasdaq 100 index is rising, reaching its highest level in two years.
This correlation suggests that the stock market's reaction to US inflation data could affect Bitcoin's price.
Investors are preparing for increased volatility and hedging against potential downside risk.
Upcoming US inflation data and Trump-related momentum could have a significant impact on Bitcoin's price.