The US stock market dominates the crypto world: BTC reaches its highest correlation with the Nasdaq index since 2022

Bloomberg reported today that the 30-day correlation coefficient between BTC and the Nasdaq 100 index has reached about 0.7, showing a high positive correlation and setting a new two-year high. (Synopsis: The US PPI in December was lower than expected, BTC exceeded $97,000, and tonight's CPI was released to be careful of shocks) (Background supplement: Trump will abolish the encryption accounting standard SAB 121 on the first day of his presidency and remove the obstacles to bank encryption custody) When investing in cryptocurrency, the overall economic environment is a factor that cannot be ignored. General economic indicators, such as inflation rate (CPI), Intrerest Rate policy, Money Supply, etc., have a profound impact on the encryption market. BTC hits two-year high with U.S. tech correlation This is reflected in the growing correlation of the cryptocurrency and TradFi markets. According to Bloomberg today, the 30-day correlation coefficient between BTC and the Nasdaq 100 index has reached about 0.7, showing a high positive correlation and setting a new two-year high. This shows that the line between the encryption market and the TradFi market is gradually blurring, and the characteristics of BTC as a risk asset are becoming more pronounced in the global financial market. Note: The correlation coefficient is between -1 and 1, and the closer to 1, the more the two variables tend to move in the same direction. In finance, a correlation coefficient above 0.7 is usually considered a high positive correlation. Therefore, investors should closely follow factors such as global economic trends, changes in monetary policy, and market liquidity when investing in cryptocurrency. CPI will rise for 5 in a row? The CPI data to be released tonight may affect the trend of BTC, as it will affect the pace of interest rate cuts by the Federal Reserve. Market forecasts show that CPI annual growth in December was estimated at 2.9%, slightly lower than last November's 2.7%, and monthly growth is expected to be 0.4%, up from 0.3% in the previous month, suggesting that CPI may rise for the fifth consecutive month. The Fed's preferred core CPI, which excludes food and energy costs, is expected to rise 3.3% year-over-year, unchanged from November, and is forecast for a monthly increase of 0.2%, down slightly from the previous reading of 0.3%. While rental inflation is expected to remain low at 0.2% in December after slowing down in November, inflationary pressures remain in anticipation of new tariffs after Trump takes office, continued strong auto sales, and rising medical costs such as auto insurance and the Los Angeles fires. Against this background, the yield on the 10-year Treasury note has soared to close to 5%, and the dollar index once touched a high of 110; In contrast, the stock and cryptocurrency markets came under pressure, with BTC down more than $11,000 from its previous high of $108,100, and U.S. stocks giving up post-election gains. StcokQ Trump's Inauguration In addition, Trump is about to be sworn in on January 20, and the new administration may quickly implement a series of policies. Market participants are weighing inflationary tariffs, the potential risks of immigration policies, and the impact of Trump's promise to make the U.S. a global cryptocurrency hub. According to the Washington Post, Trump is expected to issue an executive order on his first day in office related to addressing the debankization of the cryptocurrency industry and repealing the controversial cryptocurrency accounting standard SAB 121. Derive.xyz platform data shows that Hedging trading activity in the options market is increasing significantly, indicating that investors are preparing for the upcoming market fluctuation. Sean Dawson, head of research at the platform, said: "The proportion of put options deals shows that investors are hedging potential downside risks during Trump's tenure." Looking ahead to BTC's short-term future, K33 Research analysts concluded: "The sensitivity of the market to the Intrerest Rate over the past month shows that the upcoming CPI data on Wednesday is particularly important. In addition, the momentum of Trump's policies may be further strengthened in the days leading up to his inauguration." Related reports Will BTC double bottom? Standard Chartered Bank: If BTC loses 90,000 support, it may cost another 10% If BTC V falls again after the turn, will the CME gap pressure be covered? The Trump family WLFI Cut Lossdumping 18,000 ETH? Net acid: The new president of the United States is also sucker "U.S. stocks rule the crypto world: BTC and Nasdaq index correlation reach the highest point since 2022" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".