Citi Predicts Shift in Relationship Between Stocks and Cryptocurrency

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Coin-Turk 8 months ago 139

Citi, a prominent Wall Street bank based in the U.S., highlighted in a new research report that the relationship between the stock market and cryptocurrencies may diminish as the cryptocurrency sector matures. The bank emphasized that this development will be shaped by an increase in the investor base, technological advancements, and the widespread adoption of cryptocurrencies. These changes are expected to impact investor behavior and market dynamics significantly.

Cryptocurrency Market is Expanding

According to Citi, the cryptocurrency market has shown significant growth in recent years, particularly in terms of market capitalization, outpacing U.S. stocks. The report indicates that while stocks continue to be the biggest macro influencer on the cryptocurrency market, this relationship may weaken in the near future.

Citi’s analysis suggests that as the cryptocurrency market matures, the influence of different asset classes will increase, leading to changes in market relations. Technological advancements and a growing user base are cited as key catalysts for this transformation.



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