How does the live performance of the NASDAQ 100 index affect the cryptocurrency market?

1 answers

• McCoy RivasNov 18, 2020 · 5 years ago
  At BYDFi, we closely monitor the live performance of the NASDAQ 100 index and its potential impact on the cryptocurrency market. While there is no definitive answer to how the NASDAQ 100 index affects cryptocurrencies, historical data suggests that there is a correlation between the two. When the NASDAQ 100 index experiences a significant increase, it often leads to a surge in investor confidence and a greater willingness to invest in riskier assets like cryptocurrencies. Conversely, a decline in the NASDAQ 100 index can trigger a sell-off in the market, including cryptocurrencies. However, it's important to note that correlation does not imply causation, and other factors such as regulatory developments, macroeconomic indicators, and market sentiment also play a significant role in shaping the cryptocurrency market. Therefore, while the live performance of the NASDAQ 100 index can provide valuable insights, it should not be the sole factor in making investment decisions in the cryptocurrency market.
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