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.
US stocks hit all-time peaks and Bitcoin jumped past $64,000 last week after the Federal Reserve kicked off an anticipated cycle of monetary easing with an aggressive 50 basis-point reduction in interest rates. Incoming US economic data are pivotal now for traders of all stripes for clues about the possible extent and pace of further cuts in benchmark borrowing costs.
“Macro factors are driving crypto prices currently, and this should continue throughout the Fed’s easing cycle, unless we see a crypto-specific black swan event,” said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for trading in digital-asset derivatives.
Front and center this week will be commentary from Fed officials as well as the release of the central bank’s preferred measure of inflation, the personal consumption expenditures price index.
“We view the speakers as being more important than the PCE inflation data as it’s really the FOMC reaction function that is key at the moment that the market is trying to ascertain,” said Sean McNulty, director of trading at liquidity provider Arbelos Markets.
Bitcoin, the largest cryptocurrency, rose less than 1% to $63,480 as of 7:38 a.m. Monday in New York amid modest gains across most major digital tokens. The advance came alongside a climb in US equity futures.
A pledge from Vice President Kamala Harris to help grow investment in artificial intelligence and crypto if she wins the US election supported sentiment. So did expectations for more stimulus in China after a reduction in borrowing costs.
Firms are facing increasing scrutiny over whether they can be held responsible for losses by clients whose ability to understand their investments has been compromised.
Decision deepens the two firms’ decade-long relationship
Linqto Inc. was one of the first tech platforms to promise access to small investors into the high-risk, high-reward world of private investments.
Since Vis Raghavan took over the reins last year, several have jumped ship.
Chasing productivity is one thing, but when you're cutting corners, missing details, and making mistakes, it's time to take a step back.
Stan Gregor, Chairman & CEO of Summit Financial Holdings, explores how RIAs can meet growing demand for family office-style services among mass affluent clients through tax-first planning, technology, and collaboration—positioning firms for long-term success
Chris Vizzi, Co-Founder & Partner of South Coast Investment Advisors, LLC, shares how 2025 estate tax changes—$13.99M per person—offer more than tax savings. Learn how to pass on purpose, values, and vision to unite generations and give wealth lasting meaning
