#Bitcoin's Correlation to Nasdaq Soars#
Hot Topic Overview
Overview
Recently, the correlation between Bitcoin and the Nasdaq 100 index has significantly increased, reaching its highest level in two years, with a 30-day correlation coefficient of approximately 0.70. This indicates that the performance of US tech stocks may have a significant impact on the digital token market. Analysts believe that the upcoming US inflation data will have a major impact on the market, and investors are preparing for increased volatility, leading to increased hedging activity in the options market.
Ace Hot Topic Analysis
Analysis
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, indicating a high degree of synchronicity in the movement of these two assets. This surge in correlation is primarily driven by recent US inflation data, which has increased investor sensitivity to interest rates. As a result, investors are particularly focused on the Consumer Price Index (CPI) data to be released on Wednesday. Analysts believe that the CPI data will have a significant impact on the trajectory of digital tokens and may set the tone for their future performance. Furthermore, with the US presidential inauguration approaching, the Trump-related momentum may still be strengthening, further exacerbating market volatility. Option market hedging activities are increasing as investors prepare for heightened volatility, with the proportion of bearish bets rising, suggesting that investors are hedging against potential downside risks.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The correlation between Bitcoin and the Nasdaq 100 index has reached its highest level in two years, indicating an alignment in their movements.
This correlation could be driven by increased investor sensitivity to interest rates and expectations for the reaction to US inflation data.
Upcoming US inflation data could have a significant impact on Bitcoin prices.
Investors are increasing hedging activities to address potential market volatility.