The correlation between equities and the cryptocurrency market has intensified as crypto becomes more mainstream, according to Justin Barlow, head of BD & Investments at Sei. Currently, cryptocurrency seems to be closely tied to macroeconomic narratives. For instance, Ethereum is just above its trading price during the FTX collapse, while Bitcoin remains significantly higher. Barlow notes that traditional financial institutions, like BlackRock, influence both markets, leading to deeper connections. When risk aversion rises, investors often withdraw from cryptocurrencies first, exacerbating market pain in the short term. He anticipates continued struggles until more favorable economic data emerges, yet maintains a long-term bullish outlook on crypto's viability despite the current downturn. This ongoing cycle reflects the growing interaction between traditional finance and crypto, and Barlow expects market excitement may resurface soon, urging investors to consider long-term growth metrics.

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