Cryptocurrency market and NASDAQ show positive correlation ahead of US CPI release

02/13/2023 10:45 • Tech Ticker • 159 views

It is reported that before the release of the US CPI, the relationship between the cryptocurrency market and the NASDAQ turned positive. The 90-day correlation coefficient between the total market value of the cryptocurrency market and the NASDAQ rose from -0.12 to 0.74 in four weeks, reaching the highest level since the beginning of November. Observers expect that the US CPI report on Tuesday (February 14) is expected to show that the deflation of the world’s largest economy continues, which means that the encryption market is developing at the same time with technology stocks again. In the days when technology stocks are rising, cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH) may also rise. On the contrary, the decline of technology stocks may drag down the cryptocurrency market. （coindesk）

The relationship between cryptocurrency market and NASDAQ turned positive before the release of US CPI

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According to reports, the relationship between the cryptocurrency market and NASDAQ has turned positive ahead of the release of the US CPI. There has been a significant increase in the correlation coefficient between the total market value of the cryptocurrency market and the NASDAQ, rising from -0.12 to 0.74 in just four weeks, which is the highest level since November. This is a notable development as the correlation between the two has not always been clear.

Observers are now expecting that the US CPI report, expected to be released on February 14, will show that the world’s largest economy continues to suffer from deflation. And if so, this could be positive news for the cryptocurrency market as it could develop at the same time as technology stocks. The days when technology stocks rise, cryptocurrencies like Bitcoin and Ethereum may also see a rise. Conversely, the decline of technology stocks may drag down the cryptocurrency market.

This correlation may be driven by several factors, including the fact that many technology stocks have recently embraced blockchain technology and cryptocurrency as a way to expand their businesses. This has led to a perception that the cryptocurrency market and tech stocks are related.

Overall, the positive correlation between the cryptocurrency market and NASDAQ ahead of the US CPI release is a significant development that can impact both markets. Investors and market analysts need to keep an eye on these developments to assess the impact of deflation on cryptocurrency prices.

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