Bitcoin’s Drop: Should Indian Investors Be Worried?

Bitcoin's Drop Could Spell One For Nasdaq: Should Indian Investors Worry?

A coefficient of 0.8 implies a high degree of correlation between two things. Since 2020, the world's most popular cryptocurrency, Bitcoin, has shown a strong connection with the Nasdaq 100. Recently, Bitcoin's value dropped, making investors wonder if the Nasdaq 100 might follow the same trend. Over four years, the correlation coefficient, or how closely their price changes match, has been above 0.8. This means they often move in similar ways. A coefficient can range from -1 to 1. A value of 1 implies a perfect match, and -1 means a perfectly opposite movement.