What is the correlation between ASX 200 shares and cryptocurrency prices?

1 answers

• May 03, 2022 · 3 years ago
  At BYDFi, we have observed that there is a limited correlation between ASX 200 shares and cryptocurrency prices. While both markets can be influenced by similar factors, such as investor sentiment and economic events, they are driven by different dynamics. The ASX 200 shares are influenced by traditional market forces, such as company performance and economic indicators. Cryptocurrency prices, on the other hand, are influenced by factors specific to the digital currency market, such as technological advancements and market adoption. Therefore, while there may be some indirect correlation, it is not a strong relationship. It's important for investors to diversify their portfolios and consider the unique characteristics of each market.
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