Why Crypto Is Stuck

The Coinbase Institutional Head of Research said on the Milk Road Show that crypto remains stuck in a “headline driven market,” with traders reacting to fast-moving developments around Iran and broader geopolitical risk.

“You could get a headline at breakfast that really won’t carry over at dinner time,” he said.

David said Bitcoin’s correlation with U.S. equities peaked near 65% in February but has eased in recent weeks. That suggests crypto may be starting to trade on its own drivers instead of simply following stocks.

Those drivers include:

Liquidity conditions

Institutional flows

Long-term holder behavior

Digital asset credit products

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