#Bitcoin is linked to the Nasdaq, which is setting new highs.#
Hot Topic Overview
Overview
Bitcoin's correlation with the Nasdaq 100 Index has reached its highest level in two years, with a 30-day correlation coefficient of around 0.70, indicating a high degree of synchronicity in their movements. This increased correlation is primarily driven by expectations of Federal Reserve rate hikes and inflation data. Analysts believe that the upcoming US Consumer Price Index (CPI) data will have a significant impact on Bitcoin's trajectory, and investors are hedging against potential downside risk through the options market.
Ace Hot Topic Analysis
Analysis
The correlation between Bitcoin and the Nasdaq 100 Index has reached its highest level in two years, with a 30-day correlation coefficient of around 0.70, indicating a high degree of synchronicity in their movements. This correlation suggests that the stock market's reaction to US inflation data could have a significant impact on digital tokens. Analysts point out that Wednesday's Consumer Price Index (CPI) data will be particularly important due to increased sensitivity to interest rates recently. Additionally, the upcoming inauguration could also influence the market. Hedging activity in the options market is increasing, indicating that investors are preparing for increased volatility, with the proportion of bearish bets rising, reflecting investor concerns about potential downside risks.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The correlation between Bitcoin and US tech stocks has hit a two-year high, indicating that stock market reactions to US inflation data could impact Bitcoin's trajectory.
The 30-day correlation coefficient between Bitcoin and the Nasdaq 100 index reached its highest level in two years, indicating a close relationship between their movements.
Investor sensitivity to interest rates is heightened, and Wednesday's CPI data will have a significant impact on the market.
Increased hedging activity in the options market suggests investors are preparing for increased volatility, with rising put option bets reflecting concerns about potential downside risks.