Crypto’s Correlation with Equities: A Closer Look at Market Trends

Crypto's Correlation with Equities A Closer Look at Market Trends

  • The crypto market is highly correlated with the stock market, moving in tandem with the latter.
  • The US job report cites reduced unemployment rates, to which the stock market may react positively.
  • The community expects a bullish crypto rally in response to the US jobs report.

Recent reports offer a glimmer of hope to the crypto community, which has been navigating a turbulent market. A new Bloomberg report highlights the growing correlation between crypto and equities, suggesting a potential crypto boom following the positive U.S. jobs report.

The report discusses the decreased unemployment rate, alleviating concerns of a weakening labor market. The Labor Department’s weekly jobless claims report also revealed the unemployment rate falling to levels last seen in mid-June. This signals a lower likelihood of U.S. Federal Reserve interest rate hikes, potentially fueling a bullish crypto rally.

Correlation Between Crypto and Stocks

The US jobs report is a key economic indicator that can significantly impact both the stock market and the crypto market. Additionally, the strong correlation between the two markets further supports the idea of a potential shif…

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