What is the correlation between stock tpr and the volatility of digital currencies?

3 answers

• Dec 28, 2021 · 3 years ago
  Yes, there is a correlation between the stock market and the volatility of digital currencies. When the stock market experiences a downturn, investors tend to seek alternative investments, such as digital currencies. This increased demand can lead to higher volatility in the digital currency market. On the other hand, when the stock market is performing well, investors may be less inclined to invest in digital currencies, which can result in lower volatility.
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• Dec 28, 2021 · 3 years ago
  The correlation between the stock market and the volatility of digital currencies is not always straightforward. While there can be some influence from the stock market on digital currency prices, other factors such as regulatory developments, technological advancements, and market sentiment also play significant roles in determining the volatility of digital currencies.
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• Dec 28, 2021 · 3 years ago
  According to a study conducted by BYDFi, there is a positive correlation between the stock market's performance and the volatility of digital currencies. When the stock market experiences high levels of volatility, it tends to spill over into the digital currency market, leading to increased price fluctuations. However, it's important to note that this correlation is not always consistent and can vary depending on various market conditions and external factors.
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