#Bitcoin's Correlation to Nasdaq Rises#
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 about 0.70. This means that the price movement of Bitcoin is highly consistent with the movement of the Nasdaq 100 index, indicating that Bitcoin is becoming increasingly influenced by the stock market. This heightened correlation may be related to investor reaction to US inflation data, as inflation data could impact the Federal Reserve's monetary policy, in turn affecting stock prices and the price of Bitcoin. Additionally, investor expectations surrounding the upcoming inauguration may also amplify market volatility, leading to a further increase in the correlation between Bitcoin and the Nasdaq 100 index.
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 approximately 0.70, indicating an increased likelihood of synchronized movements between the two. This trend is primarily driven by US inflation data, as investor reactions to inflation data will directly impact both the stock market and digital tokens. K33 Research analysts note that the past month's sensitivity to interest rates highlights the significance of Wednesday's CPI data, which is being closely watched by investors. Additionally, Trump-related momentum may intensify in the days leading up to the inauguration, further influencing market volatility. Hedge activity in the options market is increasing, suggesting that investors are preparing for heightened volatility, and a rise in bearish bets reflects investor concerns about potential downside risks. Overall, the increased correlation between Bitcoin and the Nasdaq 100 index indicates a close relationship between the two, and investors need to closely monitor US inflation data and Trump-related events to navigate potential market volatility.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The correlation between Bitcoin and US tech stocks is rising, reaching its highest level in two years.
This correlation suggests that the stock market's reaction to US inflation data could influence Bitcoin's price.
Bitcoin's 30-day correlation coefficient with the Nasdaq 100 is around 0.70, indicating a high likelihood of the two moving in sync.
Investors are increasing hedging activity in the options market, suggesting they are preparing for increased volatility.