Abstract

• BTC exhibits high price volatility and is strongly driven by sentiment and speculation. While its long-term correlation with traditional assets (such as gold and the Nasdaq) remains low, its short-term correlation with the Nasdaq rises sharply during periods of intense Federal Reserve policy shifts, particularly during tightening cycles.

• Gold consistently displays safe-haven characteristics, often rising in price when BTC and the Nasdaq experience heightened volatility, thereby serving as an effective hedge.

• The Nasdaq Index demonstrates a significant Granger causal relationship with BTC, indicating its movement can serve as a leading indicator for BTC, offering valuable trading insights.

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