One previous example of the two moving together came after an announcement by the US central bank the Federal Reserve that it would start to tighten monetary policy, signalling future interest rate rises.
In response, both Bitcoin and stock markets took a sharp dip.
This week, Jerome Powell, chair of the Federal Reserve, took a more relaxed stance, saying “we probably remain in an era of very low interest rates”.
Both Bitcoin and the Dow Jones subsequently rose in the hours following.
Writing in a blog post on the findings, the IMF said: “Our analysis suggests that crypto assets are no longer on the fringe of the financial system.
Published at Fri, 14 Jan 2022 16:52:00 +0000