Key results:

• Despite the indigent production data in the USA, federal reserve liquidity plans and robust corporate earnings maintain shares and cryptographic on the surface.

• The total cryptographic market capitalization increased by 8.5% since March.

Cryptocurrency traders often increased the need for cryptocurrency to show a clear “separation” from the stock market market, and in the last 10 days the Bitcoin (BTC) and main Altcoins closely followed the S&P 500 movements, even when the development of the trade war dominated the market moods.

Settlement would check digital assets as an independent class and concerns the growing fears of potential global economic recession. This ongoing correlation led the market participants to the question of whether the cryptocurrency market is to follow the leading stock market for an indefinite period and what conditions would be necessary to occur true separation.

The stock market has strength despite commercial voltages

S&P 500 reached its peak on February 19 and since then tried to regain 5800, which took place for four months. Despite the lasting pressure of commercial disputes in the USA with Canada and Mexico, as well as imposing novel tariffs affecting almost every main economic region, actions have shown significant immunity.

Chinese state media recently announced that the United States had a still commercial negotiations. Although China officially maintains 125% of the retaliation tariff for US import, they granted exemptions for sectors such as ethan, semiconductors and some pharmaceuticals. In turn, the United States partly slowed down the car manufacturer from novel tariffs. These actions suggest that both sides gradually make concessions.

There is a reasonable possibility that the S&P 500 set the bottom at 4 835 7 April, and further profits from the current level 5635 remained likely. The stock market reacted positively to solid earnings in the first quarter, because companies adapt to tariffs by transferring production outside China or expanding operations in the United States.

For example, Microsoft recorded an augment in revenues by 13.2% year -on -year, with a higher margin and robust demand for artificial intelligence. META also provided earnings and revenues that exceeded market expectations on April 30. These results softened the fears of the potential AI bubble or the risk that the trade war may force the company to reduce the investment.

Focus on the market for the federal reserve

Instead of focusing on a recent decrease in PMI production data in the USA-Co reached the five-month lowest in April, market participants strictly monitor subsequent movements of the federal reserve policy. After a year of reduction of balance sheet, FED is now considering purchasing assets to facilitate sales pressure.

An augment in liquidity is usually beneficial for risk -oriented assets. Therefore, even if there is no full separation, cryptocurrencies can continue to operate a more supportive macroeconomic environment.

Despite the compact -term correlation, the cryptocurrency market has exceeded shares in recent months. Since March, the total cryptographic market capitalization increased by 8.5%, while the S&P 500 dropped by 5.3%. During the six months, this discrepancy becomes even more pronounced: total cryptographic market capitalization increased by 29%, while the S&P 500 dropped by 2%. Therefore, it is incorrect that these markets are moving in excellent synchronization, especially when they are viewed in longer time frames.

Related: Bitcoin up to USD 1 million until 2029

It is still premature to declare the final DNA for S&P 500 or state that the trade war has been dissolved. Economic recession would probably have negative consequences for both markets. However, the current force of shares indicates a reduction in risk aversion among investors. For now, an increased correlation between cryptocurrencies and wrestling can be the best scenario.

This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.