|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
The Relationship Between Cryptocurrencies and Stock Markets Has Become Remarkable
Sep 29, 2024 at 09:00 am
This interplay is about 50% as of September 2024, mostly due to global monetary easing initiatives carried out by major countries
Coinbase's recent study has highlighted a remarkable development in the financial landscape: the close relationship between cryptocurrencies and stock markets. This interplay, which now stands at around 50%, has been largely influenced by the global monetary easing initiatives undertaken by major economies such as the United States and China. The study holds significant implications, particularly for investors navigating these intertwined markets.
The Impact Of Monetary Policy
The evolving connection between the two markets has been notably impacted by the Federal Reserve's aggressive stance on interest rate cuts. Following a recent 50-basis-point rate reduction, Bitcoin and cryptocurrency-related stocks experienced substantial gains.
Bitcoin rallied past the $64,000 level, while stocks like Microstrategy and Coinbase also exhibited increasing momentum. This synchronization suggests that both asset classes are reacting positively as the Federal Reserve implements measures designed to stimulate economic growth.
In a parallel development, Bloomberg data reveals that the prices of US equity futures have been moving in tandem with those of cryptocurrency. For instance, as Bitcoin prices surged, several major US equities also reached new all-time highs.
This co-movement hints at a deeper correlation in the way investors are assessing risk within both markets. According to Caroline Mauron, co-founder of Orbit Markets, macroeconomic factors are now largely dictating crypto prices, an effect that is likely to continue throughout the Fed's easing cycle.
Crypto: Changing Market Dynamics
Historically, cryptocurrencies have operated independently of traditional financial markets. However, the increasing sensitivity of these digital assets to macroeconomic conditions is altering this dynamic as they mature.
This transition is reflected in Coinbase's findings, which indicate that Ethereum has outperformed Bitcoin during this period of heightened correlation. A close examination of the data reveals that Ethereum's 8% gain over Bitcoin in the week following the Federal Reserve's announcement suggests shifting investor interest in altcoins.
While Ethereum's performance has been encouraging, investors are keeping a close watch on the recent sell-offs by the Ethereum Foundation. The foundation sold 100 ETH recently, bringing the total ETH sold this year to over 3,500. Such actions have potential implications for market sentiment and the continuing growth of projects within the Ethereum ecosystem.
Future Trends And Investor Sentiment
As the link between the cryptocurrency market and the stock market continues to strengthen, investors are adjusting their strategies. Within the crypto space, there is a growing interest in exploring domains beyond Bitcoin and Ethereum, including options trading.
Memecoins like Shiba Inu and PEPE have also been gaining traction among investors, while certain sectors — such as gaming and Layer 2 solutions — are reporting impressive gains of up to 17% in a single week.
With October being a traditionally strong month for cryptocurrencies, there is speculation that favorable market conditions could fuel further price increases across both asset classes. The increasing participation of institutional investors in crypto markets is also influencing this trend, as their trading patterns tend to align with those of stocks.
Featured image from Pexels, chart from TradingView
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Safe 6.0 Coins PS4/PS5: The Ultimate Solution for FIFA Ultimate Team
- Sep 29, 2024 at 12:15 pm
- For avid FIFA Ultimate Team (FUT) players on PS4 and PS5, building the dream team is essential. However, acquiring top players can be challenging without enough coins.
-
- DraftKings Promo Code: Get $200 in Bonus Bets for Georgia vs. Alabama
- Sep 29, 2024 at 12:15 pm
- A DraftKings promo code isn't needed to place a $5 wager on Georgia vs. Alabama and receive $200 in bonus bets, win or lose.
-
- CYBRO and Avalanche (AVAX) Forecast to Lead the Next Crypto Bull Market, Experts Hint at a Massive 600% Rise
- Sep 29, 2024 at 12:15 pm
- Experts forecast significant gains for Avalanche and Cybro, hinting at a massive 600% rise during the upcoming bull market. This captivating prediction has caught
-
- CYBRO Presale Soars Past $2.5 Million: A One-in-a-Million NeoBank Investment Opportunity
- Sep 29, 2024 at 12:15 pm
- CYBRO is capturing the attention of crypto whales as its exclusive token presale quickly surges above $2.5 million. This cutting-edge NeoBank offers investors unparalleled opportunities to maximize their earnings in any market condition.
-
- RCO Finance (RCOF): A Presale Token That Promises Quicker Profits Than Shiba Inu (SHIB) and PEPE
- Sep 29, 2024 at 12:15 pm
- Comprehensive investment comparison is a critical skill for crypto investors. It helps you identify the best coin to invest in for acceptable returns.
-
- Bitcoin (BTC) Price Prediction: Will the King Coin Continue Its Rally?
- Sep 29, 2024 at 12:15 pm
- Over the last 30 days, Bitcoin [BTC] has seen a significant rebound on its price charts after 2 months of extreme volatility.
-
- Dogecoin (DOGE), Ripple (XRP), Bitcoin (BTC) Price Today – September 29, 2024
- Sep 29, 2024 at 12:15 pm
- On September 29, 2024, the latest exchange rates of Dogecoin (DOGE), Ripple (XRP), Bitcoin (BTC) in Pakistani Rupee (PKR) and US Dollar (USD) have been reported
-
- Bitcoin (BTC), Dogecoin (DOGE), and Ripple (XRP) Price Today – September 29, 2024
- Sep 29, 2024 at 12:15 pm
- On September 29, 2024, the latest exchange rates of Bitcoin (BTC) in Pakistani Rupee (PKR) and US Dollar (USD) have been reported as:
-
- DOGEN: The First Memetoken for Alpha Males Who Demand the Best
- Sep 29, 2024 at 12:15 pm
- Unleash your inner alpha with DOGEN, the meme token built for those who want to live a beautiful life. DOGEN is the alpha dog that never misses a chance to win big.