Cryptocurrency and stock price movements do not correlate with each other, indicated the latest Federal Reserve Economic Data (FRED).
The data pitted S&P 500 index performance against the cryptocurrency index managed by US-based Coinbase crypto exchange platform. The results were some interesting shaky lines – often going in the same but mostly in the opposite directions. FRED merely indicated how those two trended between a specified period – beginning in October 2018 and ending in April 2019. But the organization backing the database didn’t clarify anything further.
Rise in Correlation
The revelation followed a strong bearish phase in both the US stock and global cryptocurrency markets. In 2018, the S&P 500 posted more than 6 percent loss, while the crypto phase suffered a drastic 85-percent value depletion. For the Q4 2018, the S&P plunged 13.97-percent. At the same time, the cryptocurrency market capitalization, owing to negative sentiments around the Bitcoin Cash hard fork,…
Read Full Story : NewsBTC