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What is the correlation between the premarket price of SPY and the performance of cryptocurrency markets?

avatarRONADec 18, 2021 · 3 years ago1 answers

Is there a relationship between the premarket price of SPY (S&P 500 ETF) and the performance of cryptocurrency markets? How does the movement of the SPY premarket price affect the prices of cryptocurrencies?

What is the correlation between the premarket price of SPY and the performance of cryptocurrency markets?

1 answers

  • avatarDec 18, 2021 · 3 years ago
    At BYDFi, we have observed some correlation between the premarket price of SPY and the performance of cryptocurrency markets. When the SPY premarket price shows a significant increase, we often see a positive impact on the prices of cryptocurrencies. This can be attributed to the fact that investors may view cryptocurrencies as a high-risk, high-reward investment opportunity during periods of positive market sentiment. However, it's important to note that the correlation is not always consistent, and the cryptocurrency market is influenced by a multitude of factors beyond the stock market. Therefore, it's crucial to conduct thorough analysis and consider other indicators when making investment decisions in the cryptocurrency market.