TechFlow news, September 23 — According to the latest Bloomberg data, the correlation between cryptocurrencies and the U.S. stock market has nearly reached its historical high. The 40-day correlation coefficient between an index measuring the 100 largest digital assets and the S&P 500 Index is approximately 0.67, second only to the historical peak of 0.72 recorded in the second quarter of 2022. Caroline Mauron, co-founder of Orbit Markets, said: "Macro factors are driving cryptocurrency price increases, and this trend could persist throughout the Fed's easing cycle unless a crypto-specific black swan event occurs."
Market focus this week will center on comments from Federal Reserve officials and the U.S. Personal Consumption Expenditures (PCE) price index data. Sean McNulty, Head of Trading at Arbelos Markets, believes that officials' remarks are more important than the PCE inflation data, as the market is attempting to understand the Federal Open Market Committee's (FOMC) reaction function.
