No matter what you see, it’s bloodshed.
Unfortunately, it’s impossible to deny that equities are now interconnected with crypto.
ETH is trading at just a few hundreds dollars over where it stood around the collapse of FTX in November 2022. Bitcoin, on the other hand, has maintained a significant distance (over $65,000, if we want to be positive, from where it was during the collapse).
Justin Barlow, head of BD & Investments at Sei, told me it’s hard to pinpoint any bottom, not just the bottom, but right now, we’re very much tied into the macro narrative.
He wouldn’t be shocked if sentiment shifted and crypto started showing more green on charts.
“If you look at historical correlations between the equities market and crypto, it’s seemingly increased over time as crypto becomes more and more mainstream. And I think that’s to be expected right now: You have a lot of the big names that are active in traditional markets, very active in crypto markets, and naturally, when they want to be risk off, that translates into not just obviously equities, but the crypto market as well,” Barlow explains.
When things are going well, it’s great to have BlackRock, and other financial titans, in this space. Crypto is one of first to be thrown out when the market goes sideways.
This puts crypto into a bad position in the short-term. You can expect more volatility until the economic climate improves, but it won’t affect your belief that crypto will be strong in the long run.
Barlow says that we are only in the beginning stages of seeing how traditional financial institutions mesh with cryptocurrency.
“Not to say that there aren’t opportunities for crypto to diverge from traditional markets, but it’s certainly a factor, particularly for some of the larger assets,” He added.
There are cycles happening “much faster,” He wouldn’t surprise us if there was some excitement. “bubble back up” Then, you can get in touch with us. “near future.”
“I think the important thing is just looking at things from the long term and thinking about it in terms of the underlying metrics that matter, and growth that matters [to] users, rather than just intraday price fluctuations,” He told me.
It’s just a side effect, I suppose.
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