Definition ∞ Tech stock correlation describes the statistical relationship between the price movements of technology company stocks and other assets, such as cryptocurrencies. A high correlation indicates that these assets tend to move in the same direction, while a low or negative correlation suggests independent or inverse movements. This relationship helps investors understand market drivers.
Context ∞ In cryptocurrency news, tech stock correlation is a widely discussed topic, particularly regarding Bitcoin’s price movements in relation to the Nasdaq 100 or other tech-heavy indices. Periods of high correlation suggest that macroeconomic factors influencing traditional tech markets also affect digital assets. This observation helps analysts assess whether crypto is behaving as a risk-on asset or a distinct investment class.
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