Market update: Correlations in the crypto market continue increasing

The bitcoin price increased 2% over the past seven days after one of the least volatile periods in a long time, as the market seems to have come to terms with the 40-year high CPI numbers released last week.

Correlations in the crypto market are rising. On the chart we can see how closely BTC and ETH have followed each other over the past seven days, and their 90-day correlation is nearing all-time highs.

The increased correlations between the largest cryptocurrencies are part of a broader trend of increased correlations in the financial markets. Bitcoin's 90-day correlation with the S&P 500 is currently sitting at an all-time high of 0.58, while its correlation with the tech-oriented Nasdaq index is even higher.

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