What the correlation between bitcoin and tech stocks says about the outlook for crypto prices

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 55 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 97%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Anushree Dave covers digital assets at MarketWatch, and occasionally covers retail.

Hi everyone, welcome back to the Distributed Ledger newsletter. This is Anushree Dave, a reporter at MarketWatch.

Tech stocks versus bitcoin I asked Matthew Graham, founding and managing partner of Ryze Labs, which invests in builders of blockchain technology, to discuss the correlation between the prices of bitcoin and technology stocks. Earlier this year, tech stocks rallied as bitcoin fell, but recently the disconnect has worked in the cryptocurrency’s favor. What does this mean and what might we see next?

“In this case we are seeing a strong rebound from the excessive selling that occurred in the wake of multiple high profile collapses last year, most notably FTX of course, coupled with the tailwinds of the upcoming bitcoin and its concomitant supply side reduction.” He added that the implications seem favorable for bitcoin but less so for equities. “At this juncture in the interest rate cycle, any move to slash rates usually stems from the intent to avert a recession, which isn’t a promising sign for equities. On the flip side, persistent high rates are likely to strain corporate profit margins, presenting another challenge for stocks. Bitcoin, however, stands to gain.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Dow books worst October since 2020 as U.S. stocks close higher Tuesday before Fed decisionChristine Idzelis is a markets reporter at MarketWatch and is based in New York.
Source: MarketWatch - 🏆 3. / 97 Read more »

Treasurys poised to rally while stocks likely to fall, based on this ruleFrances Yue covers the cryptocurrency market for MarketWatch.
Source: MarketWatch - 🏆 3. / 97 Read more »