Key takeaways:
Despite weak US manufacturing data, Federal Reserve liquidity plans and strong corporate earnings keep equities and crypto afloat.
The total crypto market capitalization rose 8.5% since March.
Cryptocurrency traders have frequently zoomed in on the need for crypto to show a clear “decoupling” from the stock market, and over the past 10 days, the intraday movements of Bitcoin (BTC) and major altcoins have closely tracked those of the S&P 500, even as trade war developments have dominated market sentiment.
S&P 500 futures (left) vs. Total crypto cap, USD (right). Source: TradingView/Cointelegraph
A decoupling would validate digital assets as an independent class and address growing concerns about a potential global economic recession. This ongoing correlation has led market participants to question whether the cryptocurrency market is destined to follow the stock market’s lead indefinitely, and what conditions would be necessary for a genuine decoupling