US banking giant Goldman Sachs said that Bitcoin and altcoins are increasingly correlated with the variables of the traditional financial market.
Goldman Sachs released a report Thursday. In the report led by Zach Pandl, analysts drew attention to the correlation between Bitcoin and technology stocks. Analysts have revealed the correlation between the Bitcoin market, which reacted negatively to the Fed’s intention to raise interest rates, and low-profit tech stocks, which reacted similarly.
“Double-Edged Knife”
Analysts said that while mainstream adoption may increase valuations, it also increases correlations with other financial market variables. For this reason, it was stated that mainstream adoption could be a “double-edged sword” for the crypto-asset market, which has withdrawn 40%.
New Trends Can Be Supportive
Although the report said that new trends such as the metaverse could provide partial protection, it was nevertheless underlined that such assets would not be “immune to macroeconomic forces.”
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