#Bitcoin's Correlation with Nasdaq Increases#

Recently, the correlation between Bitcoin and the Nasdaq has significantly strengthened, reaching its highest level in two years. This suggests that the performance of US tech stocks could have a significant impact on the digital currency market. Specifically, the 30-day correlation coefficient between Bitcoin and the Nasdaq 100 index is approximately 0.70, nearing 1, implying a high probability of their movements being synchronized. This heightened correlation is primarily attributed to investors' increased sensitivity to US inflation data and the potential market fluctuations stemming from the upcoming inauguration. Analysts point out that the Consumer Price Index (CPI) data released on Wednesday will have a major impact on the market, and investors are hedging their positions in the options market to manage potential volatility. Furthermore, the momentum surrounding Trump could also intensify in the days leading up to the inauguration, further influencing market trends. In conclusion, the strengthening correlation between Bitcoin and the Nasdaq indicates that the digital currency market is becoming increasingly influenced by traditional financial markets. Investors need to closely monitor US inflation data and political developments to better navigate market trends.