Why Crypto Markets Are Relatively Aligned With Stock Markets

Suba

Moderator
Staff member
As we know between the crypto market and the stock market, although both have similarities such as commodities and investments, the prices of both are strongly influenced by supply and demand. But from the other side, they both have different fundamentals and different valuations or value indicators. stocks have a strong regulatory base whereas crypto has a weak regulatory basis. The nature of the two is also different, stocks are centralized while crypto is decentralized.
In terms of performance, stocks are company-oriented, while crypto is project-oriented.

In recent months, the movement of the crypto market has been relatively in sync with the stock market, which investors are currently benchmarking against. Crypto market crash started Nov11, 2021 Bitcoin price has dropped 4.66% from ATH to $65,579. But a strange relationship has occurred between the two where these two markets fluctuate simultaneously.

Historically, against the backdrop of hawkish indicators (contra) to the policies of the US central bank (the Fed). there has been a relationship between the stock market and the crypto market. The question for all retail investors is whether the two markets have bottomed out. (and I think it's still hard to answer). Because the benchmark or reference is the Fed.
What do you think, please comment
 
Top