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RE: The US Federal Reserve Hikes Rates. What This Means for Forex and Crypto Markets
For most of my life, I've never thought about money. I've spent the last decade writing, fiction mostly. It hasn't made me any money, yet it's what I love. Recently, however, a friend introduced me to crypto. I bought some, enjoyed it, started to read about blockchain and what not...and now really enjoy it. That's how I found out about Steemit.
Anyways, for someone such as myself, the novice that I am, these articles are greatly appreciated. Keep it up. Also, I have a question.
Why specifically would the stock market not impact crypto? In regards to human nature-I'm sure there are many crypto traders who are market trading as well-wouldn't the trend be that if the markets are bearish, crypto would follow. Shouldn't there be some connection?
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.
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.