5 months ago
Crypto market remains correlated to stocks amid macro events
Crypto Market Closely Tied to Equities
The cryptocurrency market continues to show strong correlation with equities, underperforming other risk assets due to weakening demand. This trend is expected to persist amid upcoming macro events.
- Bitcoin and Ethereum ETFs see outflows
- Layer 1 blockchain activity decreases or stagnates
- Funding rates remain low, indicating reduced demand for bullish bets
- Bitcoin mining energy consumption decreases
- Stablecoin market cap grows despite overall market weakness
ETFs have seen net outflows, layer 1 activity has fallen or stagnated and funding rates remain very low.
Analysts suggest that the crypto market lacks major catalysts in the near-term and is likely to be more sensitive to macroeconomic factors. This outlook aligns with observations of decreased blockchain activity and lower energy consumption by Bitcoin miners.
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