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<p>Bitcoin's correlation with technology stocks has turned negative, according to data <a href="https://twitter.com/Barchart/status/1740353152581566707" rel="noopener noreferrer nofollow">provided</a> by Barchart. This deviation is notable, as it is the first occurrence since the early days of 2020.</p>
<h2 id="tale-of-two-markets">Tale of two markets</h2>
<p>Historically, <a href="https://u.today/bitcoin-btc-fees-set-new-highs-in-2023-heres-explanation-behind-surge" rel="noopener noreferrer nofollow">Bitcoin</a> and tech stocks have often moved in sync, reflecting investor sentiment toward risk and innovation.&nbsp;</p>
<p>This correlation has been particularly observed during times of market optimism. The appetite for both high-growth technology stocks and cryptocurrencies seemed to rise and fall together.&nbsp;</p>
<p>The underlying reason behind this parallel movement can be largely attributed to the profile of investors into both markets, often overlapping demographics seeking growth and being comfortable with digital assets.</p>
<p>Furthermore, both markets have been sensitive to similar economic indicators and monetary policies. Tech stocks and Bitcoin frequently respond in unison to Federal Reserve announcements and interest rate changes.</p>
<h2 id="tech-stocks-stellar-trajectory">Tech stocks' stellar trajectory</h2>
<p>Meanwhile, the <a href="https://u.today/crypto-could-surge-after-nasdaq-stalls-analyst" rel="noopener noreferrer nofollow">Nasdaq 100</a> is set to close the year with record performance, which of reminiscent of the dot-com bubble's peak, per Bloomberg's report.&nbsp;</p>
<p>The tech-heavy index is charting its best year since 1999. It has been propelled by a surge in artificial intelligence enthusiasm and investor speculation on more dovish stances from the Federal Reserve.&nbsp;</p>
<p>This rally in tech stocks reflects broader market optimism, with the S&amp;P 500 also nearing an all-time high.&nbsp;</p>
<p>The anticipation of economic growth and the potential for lower interest rates in 2024 have played a significant role in this uptrend.</p>

Bitcoin (BTC) Breaks Correlation With Tech Stocks

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