Is there a correlation between the squeeze on GME and the performance of other cryptocurrencies?

1 answers

• Dec 16, 2021 · 3 years ago
  As an expert at BYDFi, I can tell you that there is indeed a correlation between the squeeze on GME and the performance of other cryptocurrencies. When the stock market experiences significant volatility, it often triggers a flight to safety among investors. Cryptocurrencies, particularly those considered to be store of value assets like Bitcoin, tend to benefit from this flight to safety. Investors view cryptocurrencies as a hedge against traditional financial markets, and during times of uncertainty, they allocate their funds towards cryptocurrencies. This increased demand drives up the prices of cryptocurrencies. However, it's important to note that the correlation may not always be strong or immediate, as the cryptocurrency market is influenced by various other factors as well.
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