, 2022-05-19 09:29:16,
Bitcoin (BTC) and Ethereum (ETH) continue to maintain an extremely high correlation with stock markets
According to recent data shared by IntoTheblock analytics, Bitcoin (BTC) and Ethereum (ETH) continue to maintain an extremely high correlation with the stock markets, with the 30-day correlation reaching as high as 0.9.
The thorny conclusion for Bitcoin bulls is that recent crypto market declines cannot be dissociated from the downturn in traditional markets. On Thursday, stock futures were under pressure again, with the S&P500 on the verge of a bear market. Fears that the Federal Reserve’s rate hikes to combat rapid inflation might send the economy into a recession resulted in investors selling stocks.
Our correlation matrix displays how crypto is moving almost in tandem with traditional equities such as Nasdaq, S&P500 and Dow Jones
30-day correlation is above 0.9
— IntoTheBlock (@intotheblock) May 19, 2022
For the second day in a row, Bitcoin has remained near $29K, causing the rest of the crypto market to suffer minor losses. Ethereum has lost 3.67% in the last 24 hours, although it is still trading near $2,000. The top 10 cryptocurrencies except stablecoins are all losing ground, with losses ranging from 0.36% (BNB) to 5.77% (Solana).
According to CoinMarketCap, the total crypto market capitalization fell 2.37% to $1.25 trillion. The dominance index for Bitcoin increased marginally to 44.8%. On Thursday, the Crypto Fear and Greed Index rose a few points to 13 and remained in “extreme fear.”
Stock market correlation
After the Federal Reserve raised interest rates by 50 basis points, or 0.5…
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