Citi Says Crypto’s Correlation With Stocks Tightens as Volatility Returns
Investment bank Citi (C) said crypto’s ties to traditional markets are tightening again, and correlations with U.S. equities have risen in recent weeks.
The bank pointed to renewed market stress, similar to crypto’s “Black Friday” earlier this month when U.S.-China trade tensions triggered simultaneous sell-offs in stocks and digital assets, as evidence of the link.
Regulation could eventually act as a unique driver for crypto and weaken the connection, though that hasn’t yet materialized, analysts Alex Saunders and Nathaniel Rupert wrote in the Monday report.
Equities remain the main macro force behind crypto moves, while correlations with gold are still elevated despite a small dip, the analysts wrote.
Volatility has climbed across…
