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FTX US Chief Brett Harrison Addresses Crypto Market And Stocks Correlation

There have been a lot of talks lately in the crypto space about the correlation or potential correlation between the markets and stocks. Check out the latest reports coming from the FTX chief below.

FTX’s Brett Harrison addresses the crypto market and stocks correlation

According to the latest reports coming from the online publication the Daily Hodl, Brett Harrison, the CEO of crypto exchange FTX US is giving his take on why digital asset markets seem to be closely correlated with US stock indices.

In a lengthy thread, Harrison talked about a common criticism of crypto not being a good inflation hedge or a portfolio diversified. It’s important to note the fact that it strongly correlates with the stock market.

“Every interview I’ve watched (or done) recently includes questions about apparent correlations between stocks and crypto, usually amid discussion of whether crypto is (1) a good inflation hedge, (2) a portfolio diversifier, (3) an independent store of value.”

Harrison also explained the fact that the reason for the correlation is that the same big players who operate in equities markets are also involved in crypto. This is making the asset classes move in tandem.

“I think the majority of what we’ve seen with crypto and equity correlations in the last several months comes purely from [extrinsic buy/sell pressure].”

He continued and pointed out the fact that all the global assets are down, across stocks, bonds, and crypto.

He also explained the big players – large institutions – with allocations across these different asset classes will look for portions of their portfolio to sell off in order to “reduce risk, increase cash balances, cover margin calls.”

Stay tuned for more news and make sure to check out the complete thread on Twitter in order to learn more details.

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