#Bitcoin Correlation with Nasdaq Strengthens#

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 that the movements of these two assets are becoming increasingly synchronized. This heightened correlation is primarily driven by recent US inflation data, which has amplified investor concerns about inflation, leading to volatility in both the stock market and the cryptocurrency market. K33 Research analysts believe that the Consumer Price Index (CPI) data released on Wednesday will have a significant impact on the market as investor sensitivity to interest rates has increased. Additionally, the upcoming presidential inauguration could also exacerbate market volatility. Hedge activity in the options market is on the rise, indicating that investors are preparing for potential volatility, with an increase in bearish bets reflecting investor concerns about downside risks in the market. Overall, the enhanced correlation between Bitcoin and the Nasdaq 100 index suggests that the stock market's reaction to US inflation data could have a significant impact on the trajectory of digital tokens.