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

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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.

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