Bitcoin: Crypto markets correlation with US equities are declining
According to Arcane Research, there is a high level for the rolling 30-day correlation between Ethereum (ETH) and Bitcoin (BTC), of 0.96. Since December 2016, this metric has been higher only 3% of the time. The only time ETH and BTC had stronger correlations were in late November 2018, early March 2019, in 2021 following the Covid fall, and the 2022 3AC catastrophe. As a result, the cryptocurrency market is currently highly correlated, with BTC acting as the main driving force. According to the Analysis firm, Bitcoin (BTC) and US equities correlation are also declining . Due to the FTX drop, Bitcoin was unable to absorb the favorable equities reaction to the November 10 CPI release’s lower-than-expected reading. The firm attributes the falling correlation to the reduced market cap, reduced liquidity, and BTC’s 77% fall. The diminished market liquidity may make it less attractive for sophisticated funds to use BTC-related macro trading tactics....