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These factors are causing a rise in BTC, ETH’s correlation with the stock market

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ambcrypto.com

Going mainstream is not always the best outcome for assets, and cryptocurrencies have lent proof to the same. While a rise in adoption had definitely brought legitimacy and capital to the market, it has also made it susceptible to macroeconomic changes.This has been highlighted in the rising correlation between cryptocurrency and U.S Stock market prices, which has been a worrying trend for analysts for quite a few years.

This was accelerated last month when the U.S Federal Reserve’s hawkish stance and inflation reporting sent both markets tumbling down.Now, as both asset classes enter a period of stability, these fears have been freshly invoked, especially since a number of announcements are expected to be rolled out by the Fed in the coming week.Historical data has shown that a positive correlation between stocks and crypto was first noted in 2018 when similar tapering by the Fed had crashed both markets.

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