Crypto and equity markets have seen sharp drops as the Federal Reserve moves to tightening policies. Accordingly, the cryptocurrency market has been moving in a correlation with stock markets for a long time. However, one hedge fund manager predicts that crypto will diverge from equities. It also gives an explanation of when this will happen. He also reveals three cryptocurrencies he has had his eye on.
Is there any light on the horizon for the cryptocurrency market?
Anthony Scaramucci, who is also the former White House Communications Director, gave a new interview to CNBC. Skybridge Capital founder Scaramucci says stocks and cryptos will have to diverge after a critical catalyst. He cites Bitcoin (BTC), Solana (SOL), and Avalanche (AVAX) as examples of these cryptocurrencies.
cryptocoin.comAs you follow, the Federal Reserve maintains its aggressive stance to combat stubborn inflation. However, Scaramucci says the Fed has probably finished raising interest rates. Accordingly, he notes that even if there is another 75 basis points increase this month, the markets will likely rise. Anthony Scaramucci expresses his views as follows:
I think the Fed will probably act once again. Honestly, I think the market will actually move higher if it’s 75 bps. Because this is really the end point now. By the way, actually 50 bps would be fine too.
“Correlation remains until there is more clarity in regulation”
Anthony Scaramucci says that for now there is a correlation between crypto and major stock indices like the Nasdaq. But Scaramucci cites the regulatory clarity of the U.S. Securities and Exchange Commission (SEC) and the Commodities and Futures Trading Commission (CFTC). And he says this will likely be a catalyst that allows crypto to act independently. In this context, the CEO of Skybridge Capital makes the following assessment:
It appears to be merging with the Nasdaq and other risk assets until the SEC, CFTC and legislator take action to create more clarity in crypto-related regulation. However, I should point out that while the overall market has dropped close to 10% in the last month, Bitcoin has dropped about 3.7%. So last month got a little better. At some point, I’m guessing you’re going to experience a split. But that won’t happen until the regulator gets clarity. So it’s not surprising to me right now that things like BTC, AVAX and SOL are moving while the market is going up.
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