#Bitcoin Nasdaq correlation heats up#
Hot Topic Overview
Overview
The correlation between Bitcoin and the Nasdaq 100 index has reached its highest level in two years recently, with a 30-day correlation coefficient of around 0.70, indicating a high degree of synchronicity between the two. This heightened correlation is mainly driven by US inflation data, increasing investor sensitivity to interest rates. The CPI data released on Wednesday is expected to have a significant impact on the digital token's trajectory. Moreover, with Biden's inauguration approaching, Trump-related momentum may still be gaining traction, and investors are hedging against potential downside risks through the options market, leading to an increase in bearish bets.
Ace Hot Topic Analysis
Analysis
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 higher probability of the two moving in sync. This phenomenon suggests a growing correlation between Bitcoin and US tech stocks, and the stock market's reaction to US inflation data could significantly impact the digital token's trajectory. Analysts point out that investors are becoming more sensitive to interest rates, and Wednesday's Consumer Price Index (CPI) data will be a key indicator. Additionally, Trump-related momentum might intensify in the days leading up to the inauguration, further influencing market volatility. Hedge activity in the options market is also increasing, signaling investors are preparing for increased volatility, with a rise in bearish bets reflecting concerns about potential downside risk.
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Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin's correlation with US tech stocks is heating up, reaching its highest level in two years.
The 30-day correlation coefficient between Bitcoin and the Nasdaq 100 is around 0.70, indicating a high probability of both moving in sync.
US inflation data could have a significant impact on the price of digital tokens, investors should watch closely.
Investors are preparing for increased volatility and taking hedging measures to mitigate potential downside risks.