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Recently, the Bitcoin price and the NASDAQ index are moving in the same direction.
The NASDAQ index acts as a leading index and is used as a key indicator in determining the direction of Bitcoin price.
Looking at the above two graphs, you can see that the price flow has been almost similar over the past 20 days.
There are several reasons for this result, but the foremost causes are the increase in the institutional fund in the cryptocurrency market, and the uncertainty in the market due to the recently ended US election.
According to JPMorgan's announcement, the demand for Bitcoin by institutional investors including Family Office recently exceeded the demand for gold ETF.
This inflow of the institutional fund requires statistics and reference points to be used as leading indicators along with an analysis of current indicators.
Currently, the most used leading and current indicator is the NASDAQ 100 futures index of traditional financial markets.
Joe Biden won the US Presidential election; however, Trump is suing the other camp for 'alleged' election fraud. Even though the election is over, the uncertainly is unfortunately still there. Nevertheless, no matter what the outcome is, the US economic stimulus against the pandemic, which is the inflow of the dollar through quantitative easing, will act as an "okay" signal for the NASDAQ and the Bitcoin market.
Bitcoin is also an investment asset, and as an investment asset, it is impossible to establish its own path apart from the existing traditional financial market. When will the Bitcoin trend of simply following the NASDAQ index be over?
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