Despite weak U.S. manufacturing indicators, the Federal Reserve's liquidity supply policy and solid earnings reports from major companies are supporting the stock market and cryptocurrency market. Recently, with an overall improvement in investment sentiment in the financial markets, major cryptocurrencies including Bitcoin (BTC) have continued their upward trend.
The total cryptocurrency market capitalization increased by 8.5% compared to March, showing a positive signal for the market overall. This is analyzed as a result of the restoration of investor confidence in traditional financial assets and the spread of risk preference sentiment to some cryptocurrency markets.
However, the cryptocurrency industry is paying attention to the possibility of decoupling from existing financial markets. Especially in the past 10 days, the daily fluctuations of Bitcoin and major altcoins have shown a very similar trend to the S&P 500 index, leading to assessments that the cryptocurrency market is still far from establishing an independent price structure.
In this situation, while macroeconomic factors such as U.S.-China trade conflicts determine the stock market atmosphere, this also demonstrates that cryptocurrencies are still subordinate to traditional markets as an asset class.
Investors believe that the true decoupling will depend on the future development of macroeconomic conditions, such as the Federal Reserve's policy direction and changes in financial market regulation under the Trump administration. Attention is focused on when the cryptocurrency market, with its unique narrative and supply structure, will break away from existing financial markets.
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