Sep 28, · Recent Stock and Crypto Market Bull Run Driven by Unlimited QE. There is no doubt that Bitcoin (BTC) and the overall crypto market has some correlation with the stock market, with market experts remarking that Bitcoin has been surging in tandem with traditional markets for awhile. Extensive research has already been conducted by market experts to study the seeming correlation of both markets. In the article, we use a simple holistic method to observe the Bitcoin and crypto market correlation. Oct 17, · Bitcoin’s correlation to the stock market has been suggested by many cryptocurrency analysts to mean that BTC is becoming increasingly represented in the traditional market. For one, this could pull the crowd from the traditional market, and it already has, to a large extent. Analysts from Morgan Stanley, Wells Fargo, and other financial institutions have recently reported on a newly-observed correlation between bitcoin and the traditional stock market. In the past, bitcoin’s place in financial markets has been that of an asset that was completely uncorrelated with anything else.
Correlation stock market bitcoinBitcoin’s Stock Market Correlation Just Hit Zero for the First Time Since May
Hence, the importance of big co-operations betting big on Bitcoin cannot be overemphasized. Regardless, the year is still looking promising for Bitcoin. The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.
Ethereum reached a 2-year high on Sept 1. It seems that the crypto market has now become even more sensitive to monetary policy, maybe due to the whole crypto market is much smaller than that of the stock market. Although crypto market performance can hard have an influence on the stock market, stock traders need to be aware of the more sensitivity of the crypto market.
Bitcoin and Cryptos as assets. Well, to understand the logic of Bitcoin and Cryptos as assets, we need to have an understanding of how our financial world currently operates.
The US dollar is the de facto world currency, thus the value benchmark for everything else, including assets and other fiat currencies. When the world lacks a supply of US dollars, everything else will fall in price in reference to US dollars. If the US dollar is stable, then the crypto prices may have become influenced by the monetary policies of other currencies.
Although Bitcoin and other cryptocurrencies can function like currencies, like payment and store of value, the market cap of cryptocurrencies is quite small compared to traditional finance, and most financial activities are based on fiat money.