Bitcoin correlation with Nasdaq soars as CPI fears intensify
Bitcoin's correlation with the Nasdaq 100 has reached a two-year high, indicating increased sensitivity to economic factors, particularly the upcoming Consumer Price Index (CPI) report in the US. Bitcoin briefly surpassed $100,000 on January 15, marking its first recovery above this threshold since January 7. A correlation above 0.70 with the Nasdaq suggests that Bitcoin may react to inflation data, with higher-than-expected inflation potentially leading to market volatility and a decline in Bitcoin's price. Concerns over the Federal Reserve's tightening monetary policy have contributed to recent price corrections, with analysts noting that strong US economic data could prompt interest rate hikes, making cryptocurrencies less attractive. Markets anticipate the first US interest rate cut around June 18, 2025.
