#Bitcoin Nasdaq correlation rises#

The correlation between Bitcoin and the Nasdaq 100 has reached its highest level in two years, with a 30-day correlation coefficient of around 0.70, indicating a high probability of the two moving in sync. This heightened correlation suggests that the stock market’s reaction to US inflation data could have a significant impact on digital tokens. Analysts point to Wednesday’s Consumer Price Index (CPI) data as particularly important due to increased interest rate sensitivity recently. Additionally, Trump-related momentum could also noticeably intensify in the days leading up to the inauguration. Hedging activity in the options market is increasing, indicating investors are preparing for heightened volatility, with a rise in bearish bets suggesting investors are hedging against potential downside risk. Overall, the increased correlation between Bitcoin and the Nasdaq 100 indicates a growing sensitivity of the digital currency market to macroeconomic factors, and investors should closely monitor developments in inflation data and political events.