#Bitcoin-linked Nasdaq hits two-year high#

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 two are more likely to move in sync. This correlation suggests that the stock market's reaction to US inflation data could impact Bitcoin's price movement. Analysts believe that the upcoming Consumer Price Index (CPI) data will have a significant impact on interest rate sensitivity, and investors are preparing for increased volatility. Hedge activity in the options market is increasing, with the proportion of bearish bets rising, indicating that investors are hedging against potential downside risks. This correlation could also be related to the upcoming US presidential inauguration, as the momentum related to Trump could be amplified. Overall, the increased correlation between Bitcoin and the Nasdaq 100 index suggests that the link between the two is strengthening, and the stock market's reaction to inflation data will have a significant impact on Bitcoin prices.