Digital assets are closer in price behavior to oil and gas or shares of tech and pharmaceutical companies. This is the result Coinbase has reached.

In times of stock and crypto market volatility, it’s important to understand how market efficiency drives the ups and downs. Tl;dr: movement in crypto reflects its place in markets such as oil prices and tech stocks. My latest blog: https://t.co/5aQjwa1Fqy (1/5)

— Cesare Fracassi (@CesareFracassi) July 5, 2022

Cesare Fracassi, chief economist of the Bitcoin exchange, noted that there is an increasing correlation between cryptocurrencies and stocks after the 2020 pandemic. This relationship had never been traced before, he added.

The expert recalled that in a previous Coinbase report, the daily volatility of bitcoin and Ethereum was said to be close to that of natural gas and crude oil (~4-5%). For comparison, similar parameters of gold and silver are ~ 1-2%.

Comparing Bitcoin with Tesla stocks instead of precious metals is more appropriate for economists in terms of volatility and capitalization. For Ethereum, with shares in Lucid Motors, another electric car manufacturer, or pharmaceutical company Moderna.

“The market expects digital assets to become increasingly intertwined with the rest of the financial system. They will be affected by the same macroeconomic forces driving the global economy.”he suggested.

According to the expert, about two-thirds of the decline in crypto prices ATH attributable to the effects of rising interest rates. Only a third are due to factors specific to digital assets.

Recall that Jeffrey Gundlach, head of DoubleLine Capital, allowed Bitcoin at $10,000 due to tight monetary policy.

Guggenheim Partners did not rule out a drop to $8,000, citing the same reason.

Previously, Deutsche Bank had predicted that Bitcoin would return to $28,000 due to the stock market recovery.

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