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Bitcoin and Ethereum continue to trade almost in tandem with the largest US stock market indexes

Although the Bitcoin price is promising today, up 4% in the past 24 hours, this is still a period of uncertainty for the market. The cause is that the crypto market is related to the correlation between Wall Street. Because the US stock market is also in a similar situation. Its benchmarks – namely the S&P 500, Dow Jones, and Nasdaq Composite – fell before March but peaked at the end of the month.

The high Bitcoin price and Ethereum correlation with Wall Street continues

This is where the landscape begins to change as the US Federal Reserve begins to raise interest rates after years of policy easing. The crypto community is well aware of what has happened in the digital asset space over the next month and a half. BTC halved its value at one point and struggles at around $30,000.

The significantly more regulated and less volatile US stock market indexes posted more modest declines in the same time frame but remained in the red. The Dow fell 12%, the S&P fell 15%, while the Nasdaq, boosted by a correction in the tech sector, fell 22%.

According to IntoTheBlock, which has a correlation between the two largest cryptocurrencies – BTC and ETH – and the three most prominent US stock market indexes surged to multi-month highs.

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Source: IntoTheBlock

“The 30-day correlation is above 0.9 (the highest is 1). Crypto is moving almost in tandem with traditional equities”, the company revealed.  At the same time, gold, traditionally seen as a safe-haven asset with little or no positive correlation with riskier options like stocks and cryptocurrencies, peaked in early March and has fallen sharply since then.

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