Which cyclical vs defensive sectors are most closely correlated with the price movements of cryptocurrencies?

1 answers

• McCormack McElroyJan 18, 2023 · 3 years ago
  At BYDFi, we have observed that the technology sector is closely correlated with the price movements of cryptocurrencies. This is not surprising, considering that cryptocurrencies are built on blockchain technology and often rely on technological advancements for their growth and adoption. Additionally, the finance sector, especially fintech companies, also has a strong correlation with cryptocurrencies. As cryptocurrencies continue to disrupt traditional financial systems and offer new financial services, they attract investors who are also interested in the finance sector. However, it's important to note that correlation does not guarantee future performance, and investors should always conduct their own research and analysis before making any investment decisions.
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