Crypto ‘decoupling’ story ends as stocks follow Bitcoin’s rally
Cryptocurrency traders seek a clear decoupling of digital assets from the stock market, but recent movements show Bitcoin and major altcoins closely tracking the S&P 500. This correlation raises concerns about the cryptocurrency market's dependence on stock trends amid trade war developments. The S&P 500 has struggled to reclaim the 5,800 level but shows resilience despite trade tensions. Recent reports indicate the U.S. and China are making concessions in trade negotiations. The S&P 500 may have established a bottom at 4,835, with positive earnings reports from companies like Microsoft and Meta alleviating recession fears. Market focus is shifting to the Federal Reserve, which may increase liquidity through asset purchases. Despite short-term correlations, the total crypto market cap has outperformed equities recently, rising 8.5% since March compared to a 5.3% decline in the S&P 500. The current market dynamics suggest a favorable scenario for cryptocurrencies, although economic recession risks remain.
