3 hours ago
The narration betwixt stocks and crypto markets is apt to weaken successful the future, Wall Street slope Citi (C) said successful a probe study Monday.
While equities person been and stay the astir important macro operator of crypto markets, the "equity-crypto correlation is apt to autumn implicit clip arsenic the nascent plus people matures, the capitalist basal grows, exertion advances and adoption progresses," the study said.
Still, the speculative quality of cryptocurrency markets means that hazard plus correlations whitethorn beryllium inflated, particularly during risk-off events, the slope said.
"A much transparent regulatory authorities successful the U.S. volition besides pb to much idiosyncratic terms action," analysts led by Alex Saunders wrote.
Bitcoin (BTC) volatility is expected to proceed to autumn successful the agelong word arsenic organization adoption grows, the slope said.
Citi noted that crypto was the lone plus people whose marketplace cap, arsenic a percent of U.S. equities, grew during past year.
Bitcoin's correlation to golden is besides worthy tracking arsenic it whitethorn beryllium an aboriginal motion of the "store of worth usage case," the study added.
Read more: Bitcoin's Outlook Is Bullish With Prices Expected to Remain Elevated: Deutsche Bank
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