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Bitcoin (BTC) has recently shown a strong correlation with technology stocks when it is being perceived as an uncorrelated asset free from <a href="https://news.todayq.com/greed-returns-to-market-as-bitcoin-skyrockets-7-on-cpi-data/" rel="noopener noreferrer nofollow">external factors</a>. Reports suggest that the 90 day correlation matrics between BTC and Nasdaq tech heavy 100 index went on to hit 0.46 this week. It turns out to be the highest since last August. Bitcoin hits correlation’s high 
According to reports, since the Federal Reserve’s interest rate hikes started back in 2022, Bitcoin’s correlation with the Nasdaq 100 soared to over 0.8. This was the highest it hit since its mainstream emergence. However, this also suggests that the biggest digital asset is now being seen as a growth asset that is similar to technology stocks.
It is important to note that BTC’s original narrative as an uncorrelated, decentralized currency or digital gold has been challenged. The recent price volatility and market behavior have made it to do that. The approval of US exchange-traded funds (ETFs) linked to Bitcoin opened the gates for a new tier of investors. Bitcoin price went on to hit a record of almost $74,000 in March. This surge came after the launch of these ETFs in January.
Bitcoin price has jumped by more than 58% this year, outperforming the Nasdaq 100’s 11% increase. However, BTC price has jumped by over 10% in the last 7 days washing out the price decline recorded. It is now up by 32% in the past 90 days. What’s up with crypto? 
The biggest crypto added another 2% surge in the last 24 hours. Bitcoin is trading at an average price of $67,167, at the press time. Its 24 hour trading volume dropped by 14% to stand at $30 billion. It is holding a market cap of $1.32 trillion.
Recent data showing a slowdown in US inflation has sparked optimism that the Federal Reserve might lower interest rates soon. While several Fed officials suggest maintaining high borrowing costs for longer, any potential rate cuts are anticipated to be bullish for risk assets, including Bitcoin.
Despite this shift, Bitcoin has demonstrated steady growth and resilience since the launch of U.S. ETFs. Winterflood suggests that it will be interesting to observe how Bitcoin behaves if the Fed cuts rates, questioning whether it will continue to act as a high-risk asset or become an alternative asset appreciated by traditional markets.

Bitcoin correlation with Nasdaq 100 reaches new peak, Will BTC regain $70K?

Todayq News

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