Cryptocurrencies
Bitcoin Believers Are Back to Watching Stocks After Crypto Crash
- Equities now hold the key for risk assets, BI’s McGlone says
- Is it a relief rally or bear-market bounce, asks Glassnode
A cryptocurrency exchange kiosk in Istanbul.
Photographer: Erhan Demirtas/BloombergThis article is for subscribers only.
After a gut-wrenching bout of turbulence and existential angst, digital-asset investors are back to focusing on the mood of the US stock market as a gauge of whether the worst might be over.
Stocks are mostly up over the last few weeks and so is Bitcoin, which has added roughly 25% since the start of July. The 90-day correlation coefficient of Bitcoin and the S&P 500, after weakening slightly in June, now stands around 0.65 once again, among the highest such readings in Bloomberg data going back to 2010. A coefficient of 1 means the assets are moving in lockstep, while minus-1 would show they’re moving in opposite directions.