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- Investors pile into the US tech sector, sending the NASDAQ 100 index greater
- Bitcoin’s rally should continue on the back of the bullish tech sector
- A divergence with the NASDAQ 100 index exhibits extra upside potential for Bitcoin
Tech sector buyers are in a frenzy, as they piled into tech corporations in a rush not seen for a number of years. After correcting for many of 2022, NASDAQ 100, the inventory market index representing the US tech sector, is on fireplace.
It gained over 30% YTD and appears bullish.
A mix of components led to the bullish motion, akin to the AI revolution or the cost-cutting measures introduced by corporations akin to Meta or Amazon. The concern of lacking out drove buyers into tech shares once more, culminating in NVIDIA’s inventory worth reaching a stage that put the firm into the $1 trillion market capitalization choose membership.
For cryptocurrency merchants, these are nice information. In explicit, Bitcoin seems like it’s about to push even greater, regardless of gaining greater than 65% YTD.
Bitcoin’s worth motion lags behind
Bitcoin has been lengthy traded in a good, optimistic correlation with the NASDAQ 100 index. So, for instance, whereas the tech sector index entered bearish market territory final yr, Bitcoin adopted.
Moreover, after the NASDAQ 100 index bottomed in late October 2022, Bitcoin adopted too.
Furthermore, this yr, the worth motion was equivalent, up to a degree. That is, they each rallied at the begin of the yr. Next, a correction adopted for each the NASDAQ 100 index and Bitcoin.
But then they diverged as a result of the tech sector index’s rally continued whereas Bitcoin worth corrected. However, given the optimistic correlation between the two, one might state that it’s only a matter of time earlier than Bitcoin will make a brand new greater excessive for the yr, offering the tech sector’s rally continues.
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