Coinbase research shows that crypto and stock markets are highly correlated
The post Coinbase research shows that crypto and stock markets are highly correlated appeared on BitcoinEthereumNews.com.
The correlation between the cryptocurrency and stock markets is at an all-time high in September, according to a recent Coinbase research. The research also indicated that global easing campaigns in China and the U.S. are among the main reasons for the increased correlation, now nearing 50%. The report comes after a few major events in the crypto community went down, including the TOKEN2049 event in Singapore and the Solana Breakpoint conference. The Federal Reserve also decided upon an aggressive approach to the interest rate cuts, applying a 50-basis-point rate cut. The Fed’s decision during the Federal Open Market Committee meeting positively affected both crypto and stock markets. Bitcoin rose significantly, crossing the $64,000 mark. Additionally, crypto-related stocks rose, including Coinbase’s COIN and Microstrategy’s MSTR. Data from Bloomberg showed that U.S. equity futures were in tandem with crypto prices this week. Several U.S. stocks rose, with some reaching new all-time highs. Stocks notably suffered losses after the Kamala Harris—Donald Trump presidential debate. Bloomberg data also indicated that the 40-day correlation coefficient gauging the S&P 500 and the top 100 cryptocurrencies hit 0.67. The data further revealed that the last time the coefficient hit such highs was in 2022, at 0.72. Macroeconomic factors fuel the correlation Orbit Markets co-founder Caroline Mauron revealed that recent economic news has significantly impacted traditional and digital markets. Likewise, there is major speculation that several macroeconomic events are increasing the current correlation between stocks and crypto. Traders are also expected to ride the monetary easing wave speculated to come after the Fed’s rate cut decision. “Macro factors are driving crypto prices currently, and this should continue throughout the Fed’s easing cycle, unless we see a crypto-specific black swan event.” –Caroline Mauron, Orbit Markets Co-founder Macroeconomic conditions previously did not affect crypto markets, reducing their correlation with equity…
Filed under: News - @ September 27, 2024 11:20 pm