Bitcoin prices surged past $100,000 on Wednesday, driven by softer-than-expected US inflation data. The digital asset rose 3.9% to reach $100,222, following a trend of increasing demand for riskier assets including equities and cryptocurrencies.
The correlation between Bitcoin and the Nasdaq 100 Index has reached a two-year high, with a 30-day correlation coefficient of about 0.70. This suggests that digital tokens are closely tied to technology stocks.
US inflation data showed a 2.9% year-over-year increase in prices, meeting expectations. The core price index also fell to 0.2%, below analyst forecasts.
The softer inflation report lifted both stocks and cryptocurrency markets, with the S&P 500 and Nasdaq 100 indexes rising over 1%. This positive reaction is attributed to President-elect Trump’s pledge to make the US a global hub for crypto.
Speculators are weighing up the risks of potential inflationary tariffs and immigration policies against his promise to support digital assets. Some investors are hedging against potential volatility, as indicated by an increase in bearish bets in the options market.
Source: https://finance.yahoo.com/news/bitcoin-taking-cue-tech-stocks-013640283.html