#Bitcoin Nasdaq correlation hits two-year high#
Hot Topic Overview
Overview
The correlation between Bitcoin and the Nasdaq 100 index has reached its highest level in two years recently, with a 30-day correlation coefficient of approximately 0.70, indicating a high degree of synchronicity in their movements. This enhanced correlation is primarily attributed to the impact of US inflation data, as investors become more sensitive to interest rates. The CPI data due on Wednesday is expected to have a significant impact on the digital currency market. Additionally, as the US presidential inauguration approaches, market attention has shifted towards Trump-related momentum, leading to increased hedging activities in the options market, as investors prepare for potential volatility.
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 approximately 0.70, indicating increased synchronicity in their movements. This phenomenon reflects the market's sensitivity to US inflation data, as investors anticipate that the Consumer Price Index (CPI) data released on Wednesday will have a significant impact on the trajectory of digital tokens. K33 Research analysts believe that the increased overall sensitivity to interest rates makes the CPI data even more crucial. Additionally, the momentum surrounding Trump's inauguration could intensify in the days leading up to the event. Meanwhile, increased hedging activity in the options market suggests investors are preparing for heightened volatility. The rise in bearish bets reflects investors' concerns about potential downside risks. Overall, the correlation between Bitcoin and the Nasdaq 100 index has reached a two-year high, indicating that the stock market's response to US inflation data will significantly influence the direction of digital tokens. Investors need to closely monitor relevant data and market dynamics.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin's correlation with the Nasdaq 100 index hits a two-year high, suggesting a close relationship between the two.
US inflation data will directly impact the price of Bitcoin.
Investors are increasingly sensitive to interest rates, with particular focus on Wednesday's CPI data.
As the inauguration draws near, investors are hedging against potential downside risks, leading to an increase in bearish bets.