Cryptocurrency market The correlation between the US stock market and the US stock market has reached almost all-time highs. Bloomberg According to a study conducted by , this situation shows that the macroeconomic variables that affect the stock market also shape the cryptocurrency market. According to the data, the 40-day correlation coefficient of the 100 largest cryptocurrencies S&P 500 Index at around 0.67. This rate broke a record with 0.72 in the second quarter of 2022. Correlation coefficientA value of 1 means that the entities are moving in exactly the same direction, and -1 means that they are moving in exactly the opposite direction.
Macroeconomic Impacts on Markets Are Increasing
Last week US Federal ReserveThe Fed has started the expected quantitative easing cycle by lowering interest rates by 50 basis points. This decision has both stock and also caused significant movements in the cryptocurrency market.
The interest rate cut was made to stimulate economic growth and support markets. However, such decisions often have a significant impact on risk assets. The focus of the markets this week is on the statements to be made by the Fed officials and US Personal Consumption Expenditure Price Index (PCE) data. This data is seen as critical as it can provide clues about the Fed’s future monetary policies.
The Link Between Cryptocurrency and Stocks is Getting Stronger
Although the cryptocurrency market is generally seen as an independent asset class, its relationship with US stocks has become increasingly evident recently. The correlation coefficient, which increased to 0.67, shows that these assets are becoming more dependent on each other and investors are affected by the same macroeconomic factors.
In particular, the Fed’s monetary policy crypto money This situation is of critical importance for both stock investors and investors. This may cause investors to review their strategies and follow market movements more closely.
Developments in the US economy and the Fed monetary policyThe impact of the cryptocurrency market is increasing. In this context, it is of great importance for investors to closely follow global macroeconomic dynamics and central bank monetary policies. It is a matter of curiosity how the increasing correlation between cryptocurrencies and stocks will affect investors’ decisions in the future.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
