#Bitcoin Correlation with Nasdaq Hits Two-Year High#
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 signifies a high probability of both assets moving in tandem. Such correlation suggests that the stock market's reaction to US inflation data could impact Bitcoin's price trajectory. Analysts believe the Consumer Price Index (CPI) data due to be released on Wednesday will have a significant market impact. Investors are increasing hedging activity in the options market to navigate potential volatility.
Ace Hot Topic Analysis
Analysis
The correlation between Bitcoin and the Nasdaq 100 index has reached its highest level in two years, suggesting that the stock market's reaction to US inflation data could have a significant impact on digital tokens. The 30-day correlation coefficient is around 0.70, close to 1, meaning that the movements of the two assets are highly synchronized. Analysts at K33 Research believe that the recent increased sensitivity to interest rates makes Wednesday's Consumer Price Index (CPI) data particularly important. Additionally, Trump-related momentum could intensify in the days leading up to the inauguration. Hedge activity in the options market is increasing, indicating that investors are preparing for increased volatility. The rise in bearish bets reflects investors' concerns about 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 a close relationship between the two.
US inflation data will directly affect the price movement of Bitcoin.
Investors are becoming more sensitive to interest rates, and Wednesday's CPI data will have a significant impact on the market.
Investors are increasing hedging activities in the options market, preparing for increased market volatility and hedging against potential downside risks.