2023-05-31 12:33:46
Investors in the technology sector are jumping for joy after piling up the papers of technology companies in a rush not seen for several years. After the NASDAQ 100, which represents the US technology sector, has been corrected for most of 2022 stock market indexbut now he exploded the rockets.
The Nasdaq 100 is up more than 30% year-to-date
Such a strong bull market was led by a combination of factors such as the artificial intelligence revolution or cost-cutting measures announced by companies such as Meta or Amazon. Fear of missing out once again drove investors into tech stocks. This culminated in NVIDIA’s share price reaching a level that put the company in the select club with a market capitalization of $1 trillion.
This is great news for cryptocurrency traders. Bitcoin in particular looks set to go even higher, despite already gaining more than 65% since the start of the year.
The Bitcoin exchange rate has lagged a bit
Bitcoin has long traded in close, positive correlation with the NASDAQ 100 index. Accordingly, while the technology sector index entered bear market territory last year, Bitcoin followed the negative trend.
In fact, after the NASDAQ 100 index hit its bottom at the end of October 2022, Bitcoin also crashed soon after.
This year too, the exchange rate movement was completely the same up to a point. In other words, both rose at the beginning of the year. Then, however, both the NASDAQ 100 index and Bitcoin underwent a correction.
However, after the correction, they diverged from each other’s trajectory, as the rally of the technology sector index continued, while the price of Bitcoin corrected. However, due to the positive correlation between the two, we can say that it is only a matter of time before Bitcoin reaches a new, higher high this year, provided the rally in the tech sector continues at its current intensity.
Dear reader! Interesting charts, useful memes, funny investment ideas, or vice versa? In addition to sharing articles, the BitcoinBázis Telegram channel is also being expanded with unique content. Come and have a look! You can comment, ask questions, complain, criticize under each post. Channel address:
1685593919
#march #Nasdaq #good #sign #Bitcoin