Asset correlations can put a lot of investors on edge, and sometimes, rightly so. For several months, analysts were probing and critiquing Bitcoin for its correlation to more traditional non-crypto stocks, worrying this might affect its status as an inflation hedge. That being said, new data from Santiment suggests that the crypto asset to watch might actually be the top altcoin instead.
Ethereum’s correlation to the S&P500 is easy to see here: the two dipped together on 31 March but started rising again post 1 April. The Federal Reserve did say it was going to raise interest rates, for the first time since 2018. As the SP500 rallied from mid-March, so did Ether.
However, terms and conditions apply. While the two might be rising together, a greater correlation means that any negative press or FUD related to the Federal Reserve that affects the S&P500 could also affect Ether’s own recovery.
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