Bitcoin is showing a strong correlation with the Nasdaq 100 index, thus causing a lot of rumors in the crypto community. The pioneer cryptocurrency is once again leading the way. Experts say that many investors now see BTC as similar to tech stocks.
Joshua Lim, co-founder of Arbelos Markets, notes that Bitcoin's correlation with the Nasdaq 100 began to rise after the Federal Reserve raised interest rates in 2022.
Joshua Lim points out that investors are starting to see Bitcoin as more than just a payment method. Many view BTC as an innovative technology and a “transfer of value mechanism.” He highlights the soaring connection between Bitcoin and other assets, such as tech stocks traded on the Nasdaq.
Toby Winterflood, the Chief Product Officer at CCData, also shares this view. He believes that the link between Bitcoin and traditional markets has reached a high level. Winterflood says Bitcoin's price dynamics and those of other digital assets depend on global economic conditions and the monetary policies of the United States and other countries.
Earlier, Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, noted that from January to March 2024, insurance companies, pension funds, hedge funds, and institutional investors poured billions into Bitcoin ETFs.
