Bitcoin's correlation with U.S. tech stocks jumps to highest level since August last year

According to Bloomberg, during the last interest rate hike cycle of the Federal Reserve, 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 capitalization say that Bitcoin is more similar to high-growth assets like technology company stocks. This week, the 90-day correlation coefficient between digital currencies and technology stocks concentrated in the Nasdaq 100 index reached 0.46, the highest level since late August last year. A coefficient of 1 indicates synchronous changes in assets, while -1 indicates that they move in opposite directions. After the Federal Reserve began raising the target overnight lending rate for interbank lending in early 2022, the correlation coefficient briefly jumped to over 0.8, the highest level since the digital currency entered the mainstream view.