#Bitcoin Nasdaq Correlation Strengthens#
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, indicating a convergence in their movements. This heightened correlation is primarily driven by recent US inflation data, as investors closely monitor the impact of inflation data on both the stock market and digital tokens. Analysts believe that the upcoming release of the Consumer Price Index (CPI) data will have a significant impact on the market, and investors are hedging through the options market to address 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 around 0.70, indicating that the two are moving in sync. This phenomenon reflects the market's heightened sensitivity to US inflation data, as investors' expectations for interest rate changes intensify. The upcoming Consumer Price Index (CPI) data will be a key factor influencing Bitcoin's trajectory. Additionally, with the US presidential inauguration approaching, the market's focus on Trump-related momentum could also impact Bitcoin's movement. Hedging activity in the options market is increasing, as investors prepare for heightened volatility. The rising proportion of bearish bets suggests that investors are taking a cautious stance towards potential downside risks in the market. Overall, the strengthened correlation between Bitcoin and the Nasdaq 100 index suggests that Bitcoin's trajectory will be influenced by factors such as stock market volatility and inflation expectations. Investors need to closely monitor relevant data and market dynamics.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The correlation between Bitcoin and the Nasdaq 100 index is strengthening, reaching its highest level in two years.
This correlation suggests that the stock market's reaction to US inflation data could impact Bitcoin's price movement.
Investors are preparing for increased volatility and hedging against potential downside risks.
The upcoming US presidential inauguration could have a significant impact on markets, particularly Bitcoin and tech stocks.