The past 24 hours were very stressful for investors on Wall Street. Over the past few days, the situation has been the same as the stocks were falling and falling. Some people even pointed to this situation as “the end of the Trump honeymoon” while others analyzed ways in which there is a possible correction of the prices.
To make matters worse, the price of the dollar is also sinking and everything seems to be critical at this point. A lot of experts are uncertain of the future of the stock market – and some are even afraid that there may be a link to the cryptocurrency markets.
What could be changing and affecting the cryptocurrency market is the correlation right in times when the bitcoin price decreases. Basically, there are two types of correlation: one where both stocks and cryptocurrencies sink – and one where stocks sink while bitcoins (and other altcoins) increase.
So at this point, the cryptocurrency market shows that there is a correlation, as most of the cryptocurrencies including the leading one (Bitcoin) have fallen over the past 24 hours.
The true factors that are contributing to this is the Federal Reserve’s 10-year rate which determines the interest rates that Americans pay on their debt (which increased recently). After all, high interest rates can lead to decreased consumer spending and may increase the inflation – hence, there is a correlation between stock markets and cryptocurrency markets.
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