Cryptocurrencies
Crypto’s Correlation With US Stocks Nears Record in Fed Fallout
- Tandem moves signal macro variables are driving crypto prices
- Traders are assessing how much further the Fed will cut rates
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Digital assets and US stocks are moving more in tandem than at almost any time in the past, based on a correlation study, signaling that the macroeconomic variables driving equities are also shaping the crypto market.
A 40-day correlation coefficient for a gauge of the largest 100 digital assets and the S&P 500 Index is at about 0.67, a level exceeded only in the second quarter of 2022 when it topped 0.72, data compiled by Bloomberg show. A reading of 1 indicates assets are moving in lockstep, while minus 1 signals an inverse tie.