#Bitcoin is highly correlated with the Nasdaq.#
Hot Topic Overview
Overview
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 around 0.70, indicating a high degree of alignment in their movements. This correlation is primarily driven by investors' sensitivity to interest rates, particularly the upcoming US inflation data (CPI) which could significantly impact both digital currencies and tech stocks. Analysts believe that due to investors' concerns about interest rate changes, hedging activities in the options market are increasing, with a rise in put option bets, suggesting investors are preparing for potential downside risks.
Ace Hot Topic Analysis
Analysis
Recently, the correlation between Bitcoin and the Nasdaq index has reached its highest level in two years, indicating a strengthening link between the two. This trend is primarily driven by US inflation data, as investor expectations for inflation will impact both stock markets and digital currencies. Currently, the 30-day correlation coefficient between Bitcoin and the Nasdaq 100 index is approximately 0.70, approaching 1, which means the two are highly likely to move in sync. Analysts believe that the upcoming US Consumer Price Index (CPI) data will have a significant impact on the market, and investors are actively taking hedging measures to address potential volatility. Additionally, the upcoming US presidential inauguration could also influence market sentiment. Overall, the increased correlation between Bitcoin and the Nasdaq index suggests that the digital currency market is becoming increasingly intertwined with traditional financial markets, and investors need to closely monitor macroeconomic data and changes in market sentiment.
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 close relationship between the two.
US inflation data's impact on the stock market could affect Bitcoin's price movement.
Investors are preparing for increased volatility and hedging through the options market.
Trump-related momentum may intensify in the days leading up to the inauguration, impacting the market.