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Correlation Between Cryptocurrency and NASDAQ Signals Good News for Investors

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It is reported that before the release of the US CPI, the relationship between the cryptocurrency market and the NASDAQ turned positive. The 90-day correlation…

Correlation Between Cryptocurrency and NASDAQ Signals Good News for Investors

It is reported that before the release of the US CPI, the relationship between the cryptocurrency market and the NASDAQ turned positive. The 90-day correlation coefficient between the total market value of the cryptocurrency market and the NASDAQ rose from -0.12 to 0.74 in four weeks, reaching the highest level since the beginning of November. Observers expect that the US CPI report on Tuesday (February 14) is expected to show that the deflation of the world’s largest economy continues, which means that the encryption market is developing at the same time with technology stocks again. In the days when technology stocks are rising, cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH) may also rise. On the contrary, the decline of technology stocks may drag down the cryptocurrency market. （coindesk）

The relationship between cryptocurrency market and NASDAQ turned positive before the release of US CPI

Interpretation of the news:


The cryptocurrency market has long been viewed as a separate entity from the traditional stock market. However, a recent report has shown a positive correlation between the total market value of the cryptocurrency market and the NASDAQ. This correlation is seen as a good sign for investors as it suggests that the development of the cryptocurrency market is intertwined with that of technology stocks.

Before the release of the US CPI report, the 90-day correlation coefficient between the cryptocurrency market and the NASDAQ was negative (-0.12) but within four weeks it increased to 0.74. This is the highest level seen since the beginning of November. This correlation suggests that the success or failure of technology stocks is likely to be mirrored in the cryptocurrency market.

Investors are now waiting in anticipation for the US CPI report, which is expected to show a continued deflation in the world’s largest economy. This report is expected to have a significant impact on both the traditional stock market and the cryptocurrency market. If the report suggests a growth in the economy, it is likely that both technology stocks and the cryptocurrency market will rise. On the other hand, if the report shows a decline, it is likely that both markets will fall.

This correlation between the cryptocurrency market and the NASDAQ is a positive development for investors. It suggests that the cryptocurrency market is no longer seen as a separate entity but is instead viewed in conjunction with technology stocks. The development of the cryptocurrency market is now closely tied to that of the technology sector, which is a well-established and profitable market. This means that investors who are looking to diversify their portfolios can now look to both markets with a degree of confidence.

In conclusion, the correlation between the cryptocurrency market and the NASDAQ suggests a positive development for investors. The US CPI report is expected to be a significant determining factor in the future direction of both markets. The increased correlation between these two markets means that investors can now diversify their portfolios with more confidence.

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