The ongoing turmoil in the Japanese and United States stock markets has triggered heightened volatility in the crypto space. This highlights the interconnectedness of global markets and Bitcoin’s growing correlation with traditional finance (TradFi) markets.
Analysts at the crypto exchange Bitfinex explained in the latest Alpha report that Bitcoin’s rising correlation with TradFi markets could mean continued downward momentum for the digital asset if stock market declines persist.
Bitcoin Could Plunge Further
Economic and political developments exerting influence across all markets have triggered a broader instability that saw the Japanese stock market Topix index record its most significant two-day decline since the 2011 tsunami. The index has fallen 9.2% over the last two trading days, starting with a 6.1% plunge on Friday.
Bitfinex revealed that the Bank of Japan’s unexpected rate hike on Wednesday and Governor Kazuo Ueda’s hawkish tone triggered the downturn that has caused
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