#Bitcoin Correlation with Nasdaq Rises#
Hot Topic Overview
Overview
Bitcoin's correlation with the Nasdaq 100 index has reached its highest level in two years, with a 30-day correlation coefficient of approximately 0.70, indicating a high degree of synchronicity in their movements. This heightened correlation is primarily driven by US inflation data, with investor reactions to inflation figures largely dictating the trajectory of digital tokens. Moreover, the upcoming inauguration has significantly increased market sensitivity to interest rates, prompting investors to hedge potential downside risks through options markets.
Ace Hot Topic Analysis
Analysis
Bitcoin's correlation with the Nasdaq 100 has reached its highest level since 2022, with a 30-day correlation coefficient of around 0.70, indicating that the two assets are moving in tandem. This increased correlation suggests that the stock market's reaction to US inflation data could have a significant impact on the direction of digital tokens. Analysts point out that investor sensitivity to interest rates is rising, making Wednesday's CPI data a key indicator. Additionally, as the US presidential inauguration approaches, Trump-related momentum could intensify, with investors hedging against potential downside risks through the options market. The proportion of bearish bets has increased, reflecting investor caution about heightened market volatility.
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 are increasing hedging activity.
Trump-related momentum could influence market movements.