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

According to news on May 17, during the Federal Reserve’s last interest rate hike cycle, Bitcoin and other speculative investments plummeted in anticipation that interest rate hikes would curb risk appetite. Now, as optimism grows again that borrowing costs may soon fall, supporters of the largest cryptocurrency say Bitcoin is more akin to high-growth assets such as shares of technology companies. The same has been true for Bitcoin transactions recently. The 90-day correlation between digital currencies and the tech-heavy Nasdaq 100 hit 0.46 this week, its highest level since late August 2023. A correlation coefficient of 1 means the assets move in tandem, while a negative 1 means they move in opposite directions. The correlation jumped to over 0.8 after the Federal Reserve began raising its target rate for overnight lending between banks in early 2022.