Equities-Crypto Relationship Is Likely to Weaken in the Long Term, Citi Says
Coindesk By Will Canny|Edited by Sheldon Reback
What to know:
- Stocks have been the most important macro driver of crypto, the report said.
- Citi said the correlation between equities and bitcoin is expected to weaken in the longer term as the adoption of digital assets grows.
- Crypto regulatory clarity in the U.S. will result in more non-macro driven price action, the bank said.
The relationship between stocks and crypto markets is likely to weaken in the future, Wall Street bank Citi (C) said in a research report Monday.
While equities have been and remain the most important macro driver of crypto markets, the "equity-crypto correlation is likely to fall over time as the nascent asset class matures, the investor base grows, technology advances and adoption progresses," the report said.
The relationship between stocks and crypto markets is likely to weaken in the future, Wall Street bank Citi (C) said in a research report Monday.
While equities have been and remain the most important macro driver of crypto markets, the "equity-crypto correlation is likely to fall over time as the nascent asset class matures, the investor base grows, technology advances and adoption progresses," the report said.
Still, the speculative nature of cryptocurrency markets means that risk asset correlations may be inflated, especially during risk-off events, the bank said.
"A more transparent regulatory regime in the U.S. will also lead to more idiosyncratic price action," analysts led by Alex Saunders wrote.
Bitcoin ( BTC ) volatility is expected to continue to fall in the long term as institutional adoption grows, the bank said.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ripple XRP vs.SEC Legal Case to Close Soon
Bitcoin Sets Higher Lows—Can Bulls Target $88K Resistance?
Solana Faces 50% Drop Risk as $125–$137 Range Holds the Key Amid Market Volatility
Panama City Council makes history as the first government institution accepting crypto payments
Share link:In this post: Panama City council voted in favor of becoming the first public institution of government to accept payments in cryptocurrencies. Citizens will now be able to pay taxes, fees, tickets and permits entirely in crypto starting with BTC, ETH, USDC, and USDT. The city partnered with a bank that will receive crypto payments and convert them on the spot to U.S. dollars, allowing for the free flow of crypto in the entire economy.
Trending news
MoreCrypto prices
More
