According to PANews, according to correlation research, the correlation between digital assets and the US stock market has almost reached an all-time high. Bloomberg data shows that the 40-day correlation coefficient of the indicator measuring the 100 largest digital assets and the S&P 500 index is about 0.67, which was only exceeded in the second quarter of 2022, when it reached 0.72.

Last week, the Federal Reserve slashed interest rates by 50 basis points, kicking off the expected monetary easing cycle. Caroline Mauron, co-founder of Orbit Markets, said that macro factors are currently driving cryptocurrency prices higher, and this trend should continue throughout the Fed's easing cycle unless there is a black swan event specific to cryptocurrencies.

The focus this week will be on comments from Fed officials and the release of the U.S. Personal Consumption Expenditures (PCE) price index. Sean McNulty, head of trading at Arbelos Markets, said the speakers are more important than the PCE inflation data because the market is trying to understand the reaction function of the Federal Open Market Committee (FOMC).