1. Bitcoin rose 0.4% to $113,161, recovering from previous losses. 2. Federal Reserve's rate cut caused excess leverage and volatility in crypto markets. 3. Experts believe current slump indicates a consolidation phase for digital assets. 4. Crypto-friendly regulations and institutional investments boost market confidence this year. 5. Past leverage washes often lead to healthier market bases, according to analysts.
SPY's correlation with crypto has historically been moderate but can react to liquidity shifts. The recent rate cut may influence risk perception in equities, but the overall impact on SPY will be limited in isolation.
There is a growing crossover interest between crypto and equities, particularly ETFs. While the article focuses on crypto, it reflects broader investor sentiment that could indirectly impact SPY.
Any immediate effects of the rate cut and subsequent market volatility may dissipate quickly. The market tends to stabilize after initial reactions to monetary policy changes.