The correlation between Bitcoin and the Nasdaq 100 Index is currently at a two-year high, suggesting a substantial alignment in their price movements. A correlation coefficient of about 0.70 indicates how dramatically Bitcoin’s price responds to trends in technology stocks.
Investor sentiment is heavily influenced by the impending inflation report, which is expected to highlight ongoing price pressures. This report may shape the trajectory of both stocks and cryptocurrencies in the wake of a robust U.S. Economy.
Speculation surrounding the cryptocurrency policies of President-elect Donald Trump adds to market volatility. Analysts emphasize the importance of interest rate sensitivities as the new administration may bring significant changes that affect digital assets.