#Bitcoin Correlation to Nasdaq Rises#
Hot Topic Overview
Overview
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, indicating a high degree of synchronization in their movements. This surge in correlation is primarily driven by US inflation data, as investor reactions to inflation figures will largely determine the trajectory of digital tokens. Additionally, the upcoming US presidential inauguration could also amplify market volatility, with investors hedging against potential downside risks through the options market.
Ace Hot Topic Analysis
Analysis
The correlation between Bitcoin and the Nasdaq 100 has reached its highest level since 2022, with a 30-day correlation coefficient of around 0.70, indicating increasing synchronicity between the two. The surge in this correlation is attributed to the significant impact that investor reactions to US inflation data could have on the trajectory of digital tokens. K33 Research analysts highlight the heightened sensitivity to interest rates in the past month, making Wednesday's CPI data particularly significant. Additionally, Trump-related momentum is likely to amplify in the days leading up to the inauguration. Concurrently, hedging activity in the options market is rising, suggesting investors are bracing for heightened volatility. The increasing proportion of bearish bets indicates investors are hedging against potential downside risks. Overall, the heightened correlation between Bitcoin and the Nasdaq 100 reflects investors' focus on macroeconomic factors and their concern about future market volatility.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin's correlation with the Nasdaq 100 index has reached its highest level in two years, indicating a growing alignment between the two.
This correlation could be linked to investors' heightened sensitivity to interest rates, especially ahead of the release of US inflation data.
Investors are increasing hedging activity in the options market, suggesting they anticipate increased market volatility.
With the US presidential inauguration approaching, Trump-related momentum could impact the market.