These reasons have resulted in an increase in the link between BTC and ETH and the stock market

<p>Going popular is not always the greatest course of action for assets, as cryptocurrencies demonstrate. While increased use has undoubtedly increased the market's credibility and capital, it has also made it more subject to macroeconomic shocks.</p> <p>Cryptocurrency is stockpiling.</p> <p>This is demonstrated by the increasing link between bitcoin and the US stock market, which has been a source of concern for analysts for several years. This trend was accelerated last month by the US Federal Reserve's hawkish posture and inflation reporting, which drove both markets into freefall.</p> <p>Now, as both asset classes enter a period of stability, these anxieties have been resurrected, all the more so given the Fed's upcoming comments.</p> <p>A positive association between equities and cryptocurrency was first seen in 2018, when similar Fed tapering destroyed both markets. While stocks lost about 20% in the fourth quarter of 2018, Bitcoin lost up to 50%.</p> <p>Regardless of how worrying the trend was earlier in the year, its unprecedented acceleration since August 2021 has left many in a daze. Bitcoin has lost 13% versus the dollar in the last month, while the S&P has lost 10%, demonstrating that the divide between the two is shrinking with each crash.</p> <p>Martin Green, CEO of Cambrian Asset Management, stated the same thing in a recent Forbes interview, noting that while the Bitcoin-Nasdaq correlation was 0.2 during the last three years, "it has doubled to approximately point four in the last six weeks." He continued,</p> <p>"The link is stronger today than it was six months ago... I would argue that Bitcoin and tech stocks have been moving in lockstep recently along both axes — up and down – as a result of rising interest rates and inflation concerns affecting both stocks and crypto."</p> <p>No longer a safe haven</p> <p>As the International Monetary Fund (IMF) recently noted, cryptocurrency and technology stocks rising in lockstep might create numerous obstacles for global finance. Among these is t