The correlation between Bitcoin and the US tech stock index has reached a new two-year high, indicating that the market's reaction to the US inflation data to be released on Wednesday evening may set the tone for the digital token. Data compiled by Bloomberg shows that the 30-day correlation coefficient between the largest cryptocurrency and the Nasdaq 100 index is around 0.70. A correlation coefficient of 1 indicates that the assets move in the same direction, while -1 indicates that the assets move in opposite directions. Just as the market is concerned about the Federal Reserve's room for further rate cuts amid the strong US economy and uncertainty over the Donald Trump agenda, the inflation report is expected to show solid price pressures. 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, Bitcoin's trading price was $96,900, about $11,500 lower than the record high last month.