Bloomberg: Bitcoin's correlation with U.S. tech stocks jumps to highest level since August 2023

It was reported that during the last Fed rate hike cycle, Bitcoin and other speculative investment products plummeted due to the expectation that the rate hike would suppress risk appetite. Now, with the market becoming more optimistic about the possibility of a quick drop in borrowing costs, supporters of the largest cryptocurrency by market value say that Bitcoin is more similar to high-growth assets such as tech company stocks. Recently, Bitcoin's trading situation has been the same. The 90-day correlation coefficient between digital currencies and the Nasdaq 100 index, which is dominated by tech stocks, reached 0.46 this week, the highest level since late August 2023. A correlation coefficient of 1 means that assets move synchronously, while -1 indicates that they move in opposite directions. After the Fed began raising its target overnight lending rate for banks in early 2022, the correlation jumped to over 0.8.