- Buyers pile into the US tech sector, driving the NASDAQ 100 index greater
- Bitcoin rally set to proceed due to bullish tech sector
- Divergence with NASDAQ 100 Index Exhibits Extra Upside Potential for Bitcoin
Tech buyers are in a frenzy as they pile into tech corporations in a rush not seen in a number of years. After correcting for many of 2022, the NASDAQ 100, the inventory index representing the US tech sector, is on hearth.
It has gained over 30% because the begin of the 12 months and appears bullish.
A mix of things led to the bullish motion, such because the AI revolution or the cost-cutting measures introduced by corporations corresponding to Meta or Amazon. Worry of lacking out drove buyers into tech shares once more, culminating when NVIDIA’s inventory worth hit a stage that put the corporate within the $1 trillion market cap choose membership. .
For cryptocurrency merchants, that is nice information. Specifically, Bitcoin appears poised to push even greater, regardless of gaining over 65% year-to-date.
Bitcoin Chart by TradingView
Bitcoin’s Value Motion Is Lagging
Bitcoin has lengthy traded in a detailed and constructive correlation with the NASDAQ 100 index. So, for instance, because the tech sector index entered bearish territory final 12 months, Bitcoin adopted go well with.
Moreover, after the NASDAQ 100 index bottomed in late October 2022, Bitcoin additionally adopted go well with.
Additionally, this 12 months the value motion has been equivalent, up to a degree. That’s to say, they each rallied at the beginning of the 12 months. Then a correction adopted for each the NASDAQ 100 index and Bitcoin.
However then they diverged as a result of the rally within the tech sector index continued whereas the value of Bitcoin corrected. Nonetheless, given the constructive correlation between the 2, it may be argued that it is just a matter of time earlier than Bitcoin hits a brand new excessive for the 12 months, offered the restoration within the tech sector continues.
