#Bitcoin Correlation to Nasdaq Strengthens#

Recently, the correlation between Bitcoin and the Nasdaq 100 index has reached its highest level since 2022, with a 30-day correlation coefficient of around 0.70, suggesting a high probability of both moving in sync. This heightened correlation indicates that the stock market's reaction to US inflation data could have a significant impact on the digital token market. Analysts believe the upcoming Consumer Price Index (CPI) data will be a key factor, as the overall sensitivity to interest rates is increasing. Additionally, with the US presidential inauguration approaching, the Trump-related momentum could further strengthen, also influencing the markets. Hedge activity in the options market is rising, suggesting investors are preparing for increased volatility, with a rise in bearish bets as investors hedge against potential downside risks. Overall, the increased correlation between Bitcoin and the Nasdaq signals a strengthening link between the digital currency market and traditional financial markets, and investors need to closely monitor upcoming economic data and political events to navigate market fluctuations.