#Bitcoin-Nasdaq Correlation Rises#
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 around 0.70. This means that Bitcoin's price movements are highly aligned with those of the Nasdaq 100 Index. This heightened correlation may be linked to investors' reactions to US inflation data, as inflation data could influence the Federal Reserve's monetary policy, which in turn impacts 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 since 2022, with a 30-day correlation coefficient of around 0.70. This means that Bitcoin's price movements are increasingly in sync with those of the Nasdaq 100 Index. This heightened correlation is primarily driven by investor reactions to U.S. inflation data and sensitivity to interest rate changes. The upcoming release of the Consumer Price Index (CPI) data will be a key indicator as it will influence the Federal Reserve's monetary policy stance, thereby affecting both stock and cryptocurrency markets. Additionally, the potential Trump-related momentum ahead of the U.S. presidential inauguration could also impact the markets. Hedging activity in the options market is on the rise, indicating that investors are preparing for increased market volatility. The rising proportion of bearish bets reflects investor concerns about potential downside risks. Overall, the heightened correlation between Bitcoin and the Nasdaq 100 Index suggests that stock market reactions to U.S. inflation data will have a significant impact on the price movements of digital tokens.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin's correlation with 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 influence Bitcoin's price.
Investors are preparing for increased volatility and hedging against potential downside risks.
Upcoming US inflation data and Trump-related momentum could have a significant impact on Bitcoin prices.