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The capitalization of the cryptocurrency market has grown by 5.5% over the past day, Bitcoin has tested the $19,450 mark, despite the world’s stock markets falling at that moment. Investors continue to leave risky assets against the backdrop of increased rates of Central Banks.
Yesterday, the Bank of England and the Swiss National Bank tightened monetary policy, with the latter raising rates above zero for the first time since 2014.
Investors are focusing on the US, where Wednesday’s Fed meeting dispelled hopes for future monetary easing. The head of the department made it clear that he plans to end the year with a rate of 4.4% and increase it next year to 4.6%. This will lead to an increase in unemployment by half a percentage point, which is usually followed by an economic recession.
The cryptocurrency market has never traded in the face of higher rates, and even more so, a two-fold drop in US GDP. The last two years of crisis have shown that at such moments, the correlation between Bitcoin and American stock indices is growing.
Yesterday’s divergence goes beyond crisis synchronous falls, but this is not the first time this has happened. Bitcoin is inferior in liquidity to the stock market, which makes more visible the speculative transactions of the bulls, predicting the growth phase of the market.
Bitcoin often outperforms stock indices in rebounds. If stock indices repeat this positive movement today, we can count on short-term growth. In general, the situation for risky assets remains at a critical level and a new cycle of growth in Central Bank rates will again lead to a fall in indices and cryptocurrencies before the end of the year.
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