Over the past few months, a key trend has been evident in financial markets: the growing correlation between cryptocurrency prices and traditional risk assets such as stocks and bonds. According to David Lawant, head of research at FalconX, this correlation is influenced by the current cycle of low interest rates and a âsoft economic landingâ that experts say could be favorable for cryptocurrencies.
The crypto market, which has historically operated largely independently of traditional markets, is beginning to show signs of integrating with global economic dynamics. The US Federal Reserveâs rate cuts, which have shifted from the aggressive hikes of recent years to gradual cuts, have softened the impact on assets like Bitcoin and Ethereum, allowing them to benefit from a more relaxed investment environment.
This new context is particularly favorable for risk assets, including cryptoassets, as investors seek options with higher return potential in the face of diminishing yields on bonds and other safe investments. This could be the prelude to a new bullish wave in the world of cryptocurrencies, which would represent significant opportunities for those investing in this space.
In short, this change in the macroeconomic environment, combined with favorable Fed policy decisions, seems to be the boost cryptocurrencies needed for a stronger and more stable recovery.
