What is the correlation between the NASDAQ-100 and the price of Bitcoin?

3 answers

• Dec 14, 2021 · 3 years ago
  The correlation between the NASDAQ-100 and the price of Bitcoin is a topic of interest for many investors. While there is no direct relationship between the two, some studies suggest that there might be an indirect correlation. When the stock market, represented by the NASDAQ-100 index, experiences a significant increase or decrease in value, it can influence investor sentiment and risk appetite. This, in turn, may impact the demand for alternative investments like Bitcoin. However, it's important to note that the correlation is not always consistent and can vary over time.
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• Dec 14, 2021 · 3 years ago
  Well, the NASDAQ-100 and Bitcoin are two completely different assets, so their correlation is not straightforward. The NASDAQ-100 is an index that represents the performance of the largest non-financial companies listed on the NASDAQ stock exchange. On the other hand, Bitcoin is a decentralized digital currency. While both can be influenced by market trends and investor sentiment, they are driven by different factors. The price of Bitcoin is primarily influenced by supply and demand dynamics, adoption, and regulatory developments, whereas the NASDAQ-100 is influenced by the performance of its constituent companies. Therefore, it's important to analyze each asset individually rather than assuming a direct correlation.
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• Dec 14, 2021 · 3 years ago
  At BYDFi, we believe that the correlation between the NASDAQ-100 and the price of Bitcoin is not significant. Bitcoin, being a decentralized digital currency, is influenced by a wide range of factors such as market demand, adoption, and regulatory developments. On the other hand, the NASDAQ-100 index represents the performance of large non-financial companies listed on the NASDAQ stock exchange. While there might be some indirect influence due to investor sentiment and risk appetite, it's important to consider Bitcoin as a unique asset class with its own set of drivers. Therefore, it's advisable to analyze the price of Bitcoin based on its specific factors rather than relying solely on the performance of the NASDAQ-100.
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