Bloomberg reported today that Bitcoin's 30-day correlation coefficient with the Nasdaq 100 Index has reached approximately 0.7, indicating a strong positive relationship and marking the highest point in two years.
Why Bitcoin and U.S. Tech Stocks Are Moving Closer Than Ever
The crypto market increasingly mirrors traditional finance trends. According to Bloomberg, Bitcoin's correlation with the Nasdaq 100—a benchmark for U.S. tech stocks—now shows:
- 0.7 correlation coefficient (1 = perfect synchronization)
- Highest linkage since 2022
- Clear risk-asset characteristics emerging
Financial analysts consider correlations above 0.7 as highly significant. This signals that Bitcoin trades more like a tech stock than digital gold during market swings.
Investors should monitor:
- Global economic trends
- Central bank policies
- Market liquidity conditions
Upcoming CPI Report: 5th Consecutive Rise?
Tonight's Consumer Price Index (CPI) release could impact Bitcoin by influencing Federal Reserve rate-cut decisions. Key projections:
| Metric | Projection | Previous Value |
|---|---|---|
| Annual CPI Increase | 2.9% | 2.7% |
| Monthly CPI Change | +0.4% | +0.3% |
| Core CPI (Annual) | 3.3% | 3.3% |
Persistent inflation drivers:
- Potential new tariffs
- Strong auto sales
- Rising healthcare costs
👉 How CPI data impacts crypto trading strategies
Trump Inauguration: Crypto Policy Shifts Ahead
With President Trump's January 20 inauguration approaching, expected actions include:
- Reversing banking restrictions on crypto firms
- Scrapping SAB 121 accounting rules
- Positioning U.S. as crypto hub
Derivative markets show heightened hedging activity, suggesting investors anticipate volatility. Derive.xyz researchers note:
"Increased put option ratios reveal preparations for potential market downturns around policy changes."
FAQ: Bitcoin's Traditional Market Ties
Q: Why does Bitcoin's Nasdaq correlation matter?
A: It confirms institutional adoption while making BTC vulnerable to stock market sell-offs.
Q: How long might high correlation last?
A: Typically through bull/bear cycles—potentially years until next halving reshapes market dynamics.
Q: Should crypto investors track the CPI?
A: Absolutely. Inflation data directly impacts Fed decisions, which move all risk assets.
👉 Explore real-time crypto-stock correlations
K33 Research concludes: "This month's interest-rate sensitivity makes the CPI release critical. Trump policy momentum may add further volatility."