Bloomberg ETF analyst James Seyffart and macro trader Alex Krüger discussed the decoupling of cryptocurrency markets from tech stocks in recent weeks.
What Happened: While the Nasdaq continues to rally, led by AI darling Nvidia (NASDAQ:NVDA), Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have remained range-bound since March. The decoupling of crypto from tech stocks could signal a maturing market, with digital assets potentially offering diversification benefits, according to the expert.
"It's actually a good thing that we're not seeing Bitcoin and Ethereum correlated with the Nasdaq," noted James Seyffart in a podcast with crypto journalist Laura Shin. "You want them to be uncorrelated assets with different risk-reward payoffs."
Expectations for Fed rate cuts in September have risen to 69%, and long-term ...