#Bitcoin Nasdaq correlation hits two-year high#
Hot Topic Overview
Overview
The correlation between Bitcoin and the Nasdaq 100 index has recently reached its highest level in two years, with a correlation coefficient of about 0.70, indicating a high degree of synchronicity in their movements. This correlation suggests that US inflation data could have a significant impact on the digital token market, as investors brace for increased volatility. Analysts believe that Wednesday's Consumer Price Index (CPI) data will have a major impact on the market, while Trump-related momentum could also intensify in the days leading up to his inauguration. Hedge fund activity in the options market is increasing, with a rise in bearish bets, suggesting that investors are hedging against potential downside risks.
Ace Hot Topic Analysis
Analysis
The correlation between Bitcoin and the Nasdaq 100 has reached its highest level in two years, suggesting that the stock market’s reaction to US inflation data could set the tone for the digital token. According to a report by K33 Research analysts Vetle Lunde and David Zimmerman, the 30-day correlation coefficient between Bitcoin and the Nasdaq 100 is about 0.70, reaching its highest level in two years. This means the two assets are moving in sync with each other to a great degree. Analysts point out that the increased overall sensitivity to interest rates in the past month suggests that the importance of Wednesday’s CPI data has grown. Additionally, the Trump-related momentum may still be significantly enhanced days ahead of the inauguration. Data from trading platform Derive.xyz shows hedging activity is increasing in the options market, indicating investors are preparing for increased volatility. Sean Dawson, head of research at Derive.xyz, said the ratio of bearish bets has increased, suggesting "investors are hedging against potential downside as the inauguration approaches."
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The correlation between Bitcoin and the Nasdaq 100 index has reached its highest level in two years, indicating that the two are becoming more aligned.
US inflation data could have a significant impact on the movement of digital tokens, as investors will use it to judge interest rate changes, which in turn will affect the stock market and Bitcoin.
Investors are preparing for increased market volatility and hedging through the options market to address potential downside risks.
Trump-related momentum could intensify in the days leading up to his inauguration, which could affect market movements.