#Bitcoin's correlation with Nasdaq intensifies#

Recently, the correlation between Bitcoin and the Nasdaq has significantly strengthened, reaching its highest level in two years. This indicates that the performance of US tech stocks could have a major impact on the cryptocurrency market. Specifically, the 30-day correlation coefficient between Bitcoin and the Nasdaq 100 index is around 0.70, close to 1, implying a high probability of them moving in sync. The reason behind this enhanced correlation could be investors' reactions to US inflation data and increased sensitivity to interest rate changes. Analysts believe that the upcoming Consumer Price Index (CPI) data will have a significant impact on the market, and investors are hedging through the options market to address potential volatility. Additionally, Trump-related momentum might also influence the market. Overall, the increased correlation between Bitcoin and the Nasdaq highlights the increasingly close connection between the digital currency market and traditional financial markets. Investors need to closely monitor US economic data and policy changes to better grasp market trends.