NASDAQ 100 Soars as Investors Flood Tech Sector, Boosting Bitcoin Rally


Investors have been piling into the US technology sector, pushing the NASDAQ 100 index higher. This surge in the tech sector should continue to drive Bitcoin’s rally, and the divergence between the two suggests greater upside potential for Bitcoin.

Tech investors have been on a frenzy lately, with the NASDAQ 100 index gaining more than 30% YTD. This bullish trend is attributed to a combination of the AI revolution and cost-cutting initiatives from tech companies like Amazon and Meta. Investors fear missing out on the opportunities, resulting in a sharp increase in the stock price of NVIDIA and its entry into the $1 trillion market capitalization club.

The positive news is that cryptocurrency traders can benefit from this as well. Bitcoin has already gained more than 65% of its value this year and looks set to go even further.

The NASDAQ 100 index has been trading in a positive and tight correlation with Bitcoin in the past. Last year, when the tech sector index entered a bearish market, Bitcoin followed the same path. This year, both rallied at the start of the year before experiencing a correction. However, the NASDAQ 100 index’s rally continued while Bitcoin corrected. This divergence suggests that Bitcoin is likely to make a new higher high for the year if the tech sector’s rally continues.

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