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Crypto And Stocks Moving Together? Coinbase Research Unveils High Correlation

  • 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.

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