Citi "Bitcoin·Ethereum, correlation with stocks strengthened again"

Citi said recently that Bitcoin (BTC) and Ethereum (ETH) are once again moving together with the U.S. stock market and gold prices, and analyzed that the correlation with traditional financial markets is strengthening.

According to CoinDesk on the 28th (local time), Citi said in a report, "The correlation between digital assets (cryptocurrencies) and U.S. stocks has increased in recent weeks," adding, "This is a phenomenon that was reconfirmed after the 'Black Friday' incident earlier this month when stocks and cryptocurrencies plunged simultaneously due to U.S.-China trade tensions."

It added, "Regulatory factors could form independent price drivers for cryptocurrencies in the long term, but their effects have not yet appeared," and explained, "So far, the stock market still acts as a major macro variable for cryptocurrency price movements."

It also said the correlation with gold remains. The report added, "The correlation with gold also remains at a high level; although it has declined slightly recently, it still tends to move together amid market uncertainty."

According to the report, both Bitcoin and Ethereum are experiencing increased short-term volatility, with one-month volatility levels exceeding the three-month average. Bitcoin's volatility is lower than the one-year average but still responds sensitively to changes in stock and gold prices. On the other hand, the report analyzed that Ethereum has continued to show higher short-term volatility than Bitcoin since late last year, when expectations for a Bitcoin spot ETF were growing.