4 ms·
People will contradict me on this because it's counterintuitive, but crypto flows are big enough these days that they can move the US stock market. This is quit
by 323 4y ago
People will contradict me on this because it's counterintuitive, but crypto flows are big enough these days that they can move the US stock market. This is quite noticable on days with big crypto-only news.
Meaning that crypto is very corellated with the stock market index, and if big selling happens on crypto, the statistical arbitrage algos will sell the stock market to exploit the correlation.
- hiq 4y agoCorrelation or causation? E.g. there's a big correlation between tech stocks and cryptocurrencies, but it could just be that investors consider them both in a single category (risky assets) and thus buy / sell at the same time.