Some folks have mentioned that crypto seems to lead the way when it comes to equities. Looking at Bitcoin (BITCOMP) and the S&P 500 (SPY), it seemed to me that, nah, the correlation really isn’t that strong.
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Just out of curiosity, I tried Bitcoin with IWM and – zowie! – they are practically joined at the hip! So that’s quite interesting and worth noting.
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I’m definitely a believer these days in all assets moving pretty much in lockstep, and it’s no surprise that crypto’s recover in recent days correlates tightly to the rise in equities. If Bitcoin and Ethereum (ETH-X) start to re-weaken, I think we’re going to see precisely the same thing happen with stocks, and most particularly with small caps.
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