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> Crypto very much follows the stock market. Is that based on observing a correlation between both or is there an underlying hypothesis/theory/mechanism why cr
by andruby 4y ago
> Crypto very much follows the stock market.
Is that based on observing a correlation between both or is there an underlying hypothesis/theory/mechanism why crypto follows the stock market?
I'm genuinely curious, not trying to imply this isn't the case.
- tome 4y agoI assume the hypothesis is that people threw cheap money into both. Now cheap money is over, people are withdrawing from both.
- rapsey 4y agoBoth. It follows it observably and the reason it does is because with low interest rates there is an excess of capital. Money is too cheap so it flows into speculative asset classes like stocks and crypto.