Crypto Index Tracker: Crypto and US Equity Correlation Rises
- By Dalvir Mandara
- 4 min read
Chair Jerome Powell was openly hawkish at the Jackson Hole Symposium last week. He stated that ‘Reducing inflation is likely to require a sustained period of below trend growth that will bring some pain to households and businesses.’ Other central bankers followed suit, setting the stage for a hard battle against price rises. It encouraged markets back into risk-off, with equities suffering. August CPI data on 13 September and the 20-21 September FOMC meeting will be important for further indication of macro headwinds to come.
Crypto and US equities had decoupled. Now, however, they are moving in tandem, with the correlation between bitcoin and the NASDAQ and the S&P 500 increasing towards 75%.
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