Bitcoin, the Nasdaq, AI-related stocks and semiconductor makers increasingly respond to the same financial force: liquidity, distributed through the Federal Reserve, the US Treasury, Wall Street and institutional investors. Fed rate decisions and quantitative tightening alter funding conditions, weighing simultaneously on risky assets from digital tokens to technology valuations. A massive AI investment cycle, financed through bond issuance ($1.88 trillion of investment-grade corporate issuance through early November, including more than $370.7 billion raised by Amazon, Alphabet, Meta, Microsoft and Oracle), feeds the same capital machine. Institutional adoption, spot Bitcoin ETFs, stablecoins backed by Treasuries and tokenization build direct bridges between traditional finance and crypto. CME research found Bitcoin’s correlation with the Nasdaq-100 rose from virtually zero in 2014-2019 to 0.42 in 2020-2022, then held around 0.30 between 2023 and April 2025, and reached 0.35-0.60 in 2025 and early 2026.
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