#Bitcoin's Correlation with the Nasdaq Rises#

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 their movements are becoming increasingly synchronized. This heightened correlation is primarily driven by increased investor sensitivity to interest rates, as well as the upcoming release of US inflation data (CPI) that could have a significant impact on both the stock market and the digital currency market. K33 Research analysts point out that Wednesday's CPI data will be particularly important, as it will influence market expectations for interest rates. Additionally, the upcoming US presidential inauguration may also exacerbate market volatility. Hedging activities in the options market are on the rise, suggesting that investors are preparing for potential volatility, and an increase in bearish bets reflects investor concerns about downside risks. Overall, the elevated correlation between Bitcoin and the Nasdaq 100 index suggests that the stock market's reaction to inflation data will have a significant impact on the digital currency market, and investors should closely monitor relevant data and market dynamics.