- Nasdaq 100 rises as investors flock to US tech sector
- Bitcoin Rally Should Continue on Bullish Tech Sector Background
- Divergence with Nasdaq 100 Index Shows Further Rise Potential for Bitcoin
Investors in the tech sector are flocking to tech companies in a frenzy not seen in years. After a correction for most of 2022, the Nasdaq 100, the stock market index that represents the U.S. tech sector, is rising.
It is up more than 30% year-to-date and looks bullish.
Multiple factors contributed to the bullish move, including the AI revolution and cost-cutting measures announced by companies such as Meta and Amazon. Worried about missing out on opportunities, investors turned to tech stocks again, and eventually Nvidia’s stock reached a level that put the company in the $1 trillion market cap select club.
For crypto traders, this is great news. Bitcoin, in particular, looks set to rise even more after gaining more than 65% year-to-date.
bitcoin price slows down
Bitcoin has long traded in a strong positive correlation with the Nasdaq 100 Index. For example, while the Tech Sector Index entered bear market territory last year, Bitcoin followed suit.
Moreover, after the Nasdaq 100 index bottomed out in late October 2022, Bitcoin followed suit.
Moreover, the price dynamics this year have been similar to some extent. So, both of them rebounded earlier this year. A correction followed in both the Nasdaq 100 Index and Bitcoin.
But then the two diverged as the tech sector index continued to rise while the Bitcoin price corrected. But given the positive correlation between the two, some might say it’s only a matter of time before Bitcoin hits new highs this year if the tech sector continues to rally. .