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Sanchez
@delilahgds
The Federal Reserve's delay in cutting interest rates has increased the correlation coefficient between the cryptocurrency market and the Nasdaq. As the Fed maintained rates at 4.25%-4.50% in early 2025, risk-off sentiment grew, impacting both markets. Bitcoin and Nasdaq showed heightened synchronicity, with a 90-day correlation reaching record levels, driven by institutional investors treating crypto as a risk asset. Data from 2022-2024 indicates Bitcoin's correlation with Nasdaq strengthens during monetary policy uncertainty, with coefficients often exceeding 0.7. The delay in rate cuts, coupled with inflation concerns, has amplified volatility, aligning crypto price movements with tech-heavy Nasdaq trends.
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