Cryptocurrencies
Don’t Try Picking Crypto Winners and Losers, Fed Study Suggests
- Idiosyncratic behavior accounts for a small portion of moves
- Connectedness Index values range between 86% and 97%
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Attempting to pick winners and losers among the thousands of digital tokens in the almost $2 trillion cryptocurrency market may not be worth your while.
Prices across cryptocurrencies tend to move in a similar direction and remain sensitive to shocks as a whole, given that the market is highly interconnected, according to the finding of a study by Federal Reserve Bank of Chicago.