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Crypto markets seem to be taking their clues from stocks.
Dreamstime
Bitcoin And other cryptos are on the rise with stocks and other risk aversion on Wednesday.
In a wide-ranging rally, Bitcoin traded around $ 44,000, up 2.6% in 24 hours.
Ether, The second largest crypto rose 7.5% to $ 3,360. Alt-coins, including Avalanche
Cardano,
Spot, Terra,
Dogecoin, And
Polygon It was more than 10 percent ahead of the previous transaction.
Crypto markets seem to be taking their clues from the stock market, which rose on Wednesday, in line with expectations for the December inflation report. Of
Nasdaq Composition
It was 0.2% ago
S&P 500
The stock gained 0.3% on Tuesday.
Cryptos is moving in the opposite direction to 10-year treasury production, another sign that traders do not see bitcoin as the biggest symbol of inflation.
The International Monetary Fund has warned Blog Feelings of equity and crypto seem to be linked to posting on Tuesday, raising the risk of “contamination in financial markets.”
Prior to the outbreak, Cryptos had little contact with equity markets, the IMF said. But by 2020, the central bank was flooding the global financial markets – increasing both cryptos and stock prices.
According to the IMF, the Bitcoin connection from
S&P 500 As of 2017, 2019 was 0.01, which indicates that transactions on equity and crypto prices are completely free. That changed in 2020-21, but the relationship jumped to 0.36, indicating that both asset units are approaching locking level.
Bitcoin seems to be linked to new markets similar to 0.34
MSCI Emerging Markets Index
A.D. In 2020 and 2021, it is 17 times higher than in previous years, according to the IMF.
“Strong bonds indicate that Bitcoin has been used as a dangerous asset,” the IMF said. And crypto is now more closely linked to stocks than gold, investment level bonds and major currencies, which means that any differences from the crypt are lost.
Crypto is influencing stock markets, says IMF Bitcoin volatility could explain one-sixth of the variability of the S&P 500. And the opposite is true.
According to the IMF, the link between equity and crypto markets threatens financial stability, especially in countries where crypto is emerging. The agency wants to see “integrated” Global Control FrameworkTo reduce risks.
That may not be so soon, as it often takes years for regulators to agree on international frameworks for banks and capital markets.
If there is a message for crypto investors, they may be investing in the stock market for better or worse.
Write to Daren Fonda at dare.fonda@barrons.com
