the correlation between Bitcoin and the US technology stock index has reached a two-year high, indicating that the stock market's reaction to the US inflation data to be released later on Wednesday may set the tone for digital tokens. Data compiled by Bloomberg shows that the 30-day correlation coefficient between the largest cryptocurrency and the Nasdaq 100 index is about 0.70. A correlation coefficient of 1 indicates that asset trends are consistent, while -1 indicates that asset trends are opposite.

Amid concerns in the market about the Fed's further interest rate cuts in the face of strong US economic growth and uncertainty over Donald Trump's agenda, the inflation report is expected to show solid price pressure. Against this backdrop, bond yields and the US dollar are rising, while stocks and cryptocurrencies are under pressure. As of 9:21 am Singapore time on Wednesday, the turnover price of Bitcoin was $96,900, about $11,500 lower than last month's historical high.