Vibe Check: The Bullish Bounce Back: CoinDesk Indices’ Todd Groth
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We’ve bounced back having found support last week (see previous Vibe Check), with the CoinDesk 20 Index outperforming bitcoin (BTC) narrowly and ether (ETH) significantly.
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So what’s providing the source for the dramatic bounce in the market? In addition to Bitcoin’s rebound, Solana’s (SOL) 25% gain and Avalanche’s (AVAX) 23% rise are providing some additional buoyancy to the broader market.
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Over the past month, we’re seen a noticeable drop in correlations (daily returns) within the digital asset market, with BTC versus ETH correlations dropping, altcoins to CoinDesk 20 rising, and crypto vs equity market correlations flipping positively.
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Much stronger correlations now observed between US 10-yr yield changes and risk assets such as crypto and equity markets, as when and how much rates are cut in the future seems to be the predominant question being debated within markets.
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Edited by Aoyon Ashraf.
