Home Business Bitcoin Fans Watch US Stocks After Crypto Crash

Bitcoin Fans Watch US Stocks After Crypto Crash

0
Bitcoin Fans Watch US Stocks After Crypto Crash
After a period of turmoil and heartbreaking existential angst, digital asset investors are once again focusing on the mood of the US stock market to gauge whether the worst may be over.
Stocks have mostly risen in recent weeks, as has Bitcoin, which is up 15% in the past month. The correlation coefficient at 90 days of Bitcoin and the S&, after weakening slightly in June, is again around 0.65, among the highest such readings in Bloomberg data dating back to 2010. A coefficient of 1 means the assets are moving at the same rhythm, while minus-1 would show that they’re moving in opposite directions.
Cryptocurrencies are poised to outperform “if stocks have bottomed out,” said Mike McGloneanalyst at Bloomberg intelligence. “There are few more powerful forces in the markets than when the stock market falls at high speeds like in the first half of the year. Cryptos are part of this falling tide.”
This has been the refrain all year, with stocks and crypto moving alike. The background is a falcon US Federal Reserve which is working to reduce inflation, which has been high for four decades, which has been the source of volatility for all kinds of assets in 2022.
But whether stocks and crypto have bottomed is a question no one can ask with any real certainty – the bottoms are only noticeable after the fact.

LEAVE A REPLY

Please enter your comment!
Please enter your name here