š Positive Correlation Between Bitcoin & Nasdaq
š¦ Institutional Investors Reshape Bitcoin Market Structure
As more institutions view Bitcoin as part of their asset allocation, its correlation with the U.S. stock market has strengthened significantly. š
š Macroeconomic factors like the Fedās monetary policy and inflation expectations greatly influence Bitcoin and U.S. stocksā price trends. As the macro environment shifts, demand for these assets adjusts, leading to synchronized price trends.
š The Nasdaq Indexās top-weighted stocks are from seven companies (Microsoft, Apple, Alphabet, NVIDIA, Amazon, META, Tesla). Bitcoin is often compared to the eighth key stock.
š” Although this lacks strict logic, Bitcoinās tech innovation and high-risk traits closely relate to these tech giants, with price correlation supporting this view.
š Bitcoin ETFs tie this alternative asset directly to U.S. stocks, enhancing the marketās ability to price Bitcoin.
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