Is there a correlation between cryptocurrencies and stocks?
Many traders have noticed some correlation between the cryptocurrency and stock market. When there is a local crisis, it affects both industries, and during the period of active growth, both types of assets grow. Is there a direct correlation here? And if so, how strong is it? IMF economists have already answered this question. Correlation study According to the IMF study , there is some correlation between the cryptocurrency market and stocks. And it is growing over time. The correlation has grown especially strong between 2020 and 2021. This study included crypto assets such as BTC and ETH, as well as the S&P 500, Nasdaq, Russell 2000 and MSCI EM1 equity indices. Between January 2017 and December 2019, the volatility correlation between Bitcoin and the S&P 500 was 0.1, and between January 2020 and November 2021, it increased to 0.46. The return correlation also increased from 0.01 to 0.36. Similar changes in correlation were seen between Ethereum and the S&P 500. Con