1. Bitcoin down 0.8% to $111,722, 10% below August peak. 2. Ether, XRP, and Solana also saw price declines. 3. Investors await PCE data influencing interest-rate decisions. 4. Crypto market faces largest deleveraging event of the year. 5. Excess leverage causes sell-off, but fundamentals remain strong.
Current cryptocurrency volatility has limited direct impact on SPY. Historical instances show SPY is often resilient during crypto sell-offs, as it reflects broader market sentiments driven by economic data.
Inflation data can impact SPY if it affects interest rates, but no direct correlation noted with crypto fluctuations.
Immediate focus is on upcoming PCE data, influencing sentiment temporarily. The market usually reacts to such announcements within days.