Buyers in the technology industry are in a frenzy as they flocked to IT companies in a rush that hasn’t been seen in a while. The stock market index for the US IT sector, the NASDAQ 100, is on fire after accounting for much of 2022. It now has a 30% YTD gain and seems positive.
The optimistic movement was sparked by a variety of factors, including the AI revolution and cost-cutting initiatives implemented by businesses like Amazon and Meta. The fear of missing out spurred investors back into tech shares, ultimately resulting in NVIDIA’s stock value hitting a level that qualified the company for the $1 trillion market capitalization club.
Bitcoin‘s value movement delays.
For a long time, there has been a strong positive connection between the price of Bitcoin and the NASDAQ 100 index. As a result, Bitcoin moved into a negative market area last year as the IT sector index did not. Additionally, Bitcoin followed suit after the NASDAQ 100 index bottomed out in late October 2022.
Additionally, the value movement this year was, to some extent, the same. In other words, they all came together at the beginning of the year. After that, both the NASDAQ 100 index and Bitcoin saw a correction.
However, they later separated as a result of the tech sector index’s sustained gain and the price correction of Bitcoin. However, considering the positive correlation between the 2, one may assert that, if the IT sector’s surge continues, it is only a matter of time until Bitcoin makes a new enhanced high for the year.