Are Stock Markets and Cryptocurrency Markets correlated???
How Today’s Stock Markets Crash Will Affect Cryptocurrency Markets
Over the past few days, and particularly over the past 24 hours news on Wall Street has gone from hyper-optimistic to downright depressing. One article declared we’d come to “The end of the market’s Trump honeymoon”, others are analyzing not whether or not major correction is underway, but whether or not the correction will lead to a “multiyear bear market”. The change in sentiment is startling, and it’s been almost perfectly mimicked by the crypto market. Watching this play out has caused two questions to arise: firstly how strong the correlation between traditional financial markets and the cryptocurrency markets is and secondly if the correlation exists what the implications of today could be for cryptocurrencies.
The Correlation Question:
Disclaimer: This part of the article gets a little technical.The tl;dr here is while the correlation between the markets themselves is weak, there’s a noteworthy correlation between the sentiments of the two markets. I explain the implications of that correlation in the section following this one.
Source: https://www.ccn.com/todays-stock-markets-crash-will-affect-cryptocurrency-markets/
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