Crypto-Specific Contagion Engenders Bitcoin’s Long-Waited Decoupling From Equities

Written By: Marcus Wang and the Crypto Insights Team

Edited by: Charmyn Ho

Macro and Overall Risk Sentiment

As we approach the end of a brutal year, risk appetites are dialing up as professional traders dip back into equities, and the demand for memecoins remains high. The latest revival of sentiments was fueled by speculations about the Federal Reserve’s slowing down rate hikes. This followed a similar setup in early August when institutions jacked up exposure, and memecoins soared. Unfortunately, it did not end well for the bulls. However, many experts see the potential for a perfect rerun this time. Hopes for signs of reprieve had to come to grips with relatively tough conditions on Friday, when US employment and wage growth surpassed forecasts, pointing to enduring inflation pressures facing the Fed.