#Bitcoin-Nasdaq Link Heats Up#
Hot Topic Overview
Overview
Bitcoin's correlation with the Nasdaq 100 index has reached its highest level since 2022, with a 30-day correlation coefficient of around 0.70, indicating a high degree of synchronization in their movements. This surge in correlation is primarily driven by US inflation data, as investors become more sensitive to interest rates. The CPI data release on Wednesday is expected to have a significant impact on the market. Furthermore, Trump-related momentum could also intensify in the days leading up to his inauguration, amplifying market volatility. Options market hedging activity is increasing, with investors preparing for potential downside risks, as evidenced by rising put option bets.
Ace Hot Topic Analysis
Analysis
Recently, the correlation between Bitcoin and the Nasdaq has risen significantly, reaching its highest level in two years. Data shows that the 30-day correlation coefficient between Bitcoin and the Nasdaq 100 index is about 0.70, indicating a high degree of synchronicity in their movements. This increased correlation is primarily driven by investors' heightened sensitivity to US inflation data and expectations surrounding the upcoming inauguration. Analysts believe that the Consumer Price Index (CPI) data released on Wednesday will have a significant impact on the cryptocurrency market, while Trump-related momentum may also strengthen noticeably in the days leading up to the inauguration. Moreover, hedging activity in the options market is on the rise, suggesting that investors are preparing for increased market volatility. The proportion of bearish bets has increased, reflecting investor concerns about potential downside risks. Overall, the rising correlation between Bitcoin and the Nasdaq indicates an increasing sensitivity of the cryptocurrency market to macroeconomic factors, and investors need to closely monitor developments in inflation data and political events.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The correlation between Bitcoin and the Nasdaq 100 is heating up, 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.