The correlation between cryptocurrencies and stock markets has become remarkable, reaching about 50% as of September 2024.
The relationship is influenced by global monetary easing initiatives, particularly the Federal Reserve's aggressive approach to interest rate reduction.
Cryptocurrencies are becoming more sensitive to macroeconomic conditions as they mature, as evidenced by Ethereum's outperformance of Bitcoin during this period of increased correlation.
Investors are exploring areas beyond Bitcoin and Ethereum, such as options and memecoins, in response to the changing dynamics and potential market circumstances.