Bitcoin and Nasdaq have reached their highest correlation level in two years following the release of US inflation data. The 30-day correlation coefficient between Bitcoin and US tech stocks is currently 0.70. The Bureau of Labor Statistics released an inflation report showing a 0.4% increase in the consumer price index, bringing the annual inflation rate to 2.9%. Both stock and crypto prices have made gains since the report, with S&P 500 and Nasdaq futures gaining over 1% and Bitcoin surging by more than 2.6%. Analysts believe that President-elect Trump's inauguration could rally further bullish momentum in the cryptocurrency market, although hedging activity is rising as investors anticipate increased volatility.



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