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RE: The US Federal Reserve Hikes Rates. What This Means for Forex and Crypto Markets

in #bitcoin7 years ago

There is a connection between all markets, and stocks to crypto is no different, yes. But what I’m saying is that the correlation between these 2 might be inverse instead.

For example, when money sell out of stocks because conditions are deemed risky, it flows into safe assets such as bonds or gold. These markets having an inverse relationship with stocks as a result.

We don’t yet know what the relationship with crypto actually is, because since crypto has come into the public eye, stocks haven’t turned bearish. That’s why it’s so interesting to see if crypto does in fact act like ‘digital gold’ and act as a safe haven or not.

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Yeah, I just read an article on coindesk explaining the digital gold aspect of bitcoin. This, in relation to your explanation, has proved to be quite educational. Thank you.

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