Coinbase: Oil and Tech stocks are as dangerous as cryptocurrencies.

• The crypto market has been in full swing for the past several weeks.
• In addition to rising interest rates, the Russia-Ukraine war has worsened.
• Coinbase’s chief economist believes crypto shares a similar risk profile with oil prices and technology stocks.

According to crypto exchange Coinbase, crypto risk profiles are in oil prices and tech stocks.

“The market expects crypto assets to be more integrated with the rest of the financial system and thus be exposed to the same macroeconomic forces that run the world economy,” said Cesare Fracasi, chief economist at the Coinbase Institute, on Tuesday.

“Crypto assets today share the same risk profile as oil prices and technology stocks.”

He said two-thirds of the recent fall in crypto prices may be due to macro factors and one-third may be due to poor crypto vision. Crypto and technology shares have declined sharply and the Federal Reserve and other central banks have raised interest rates.

The largest crypto exchange in the United States, the link between stock and crypto prices, has grown significantly since the 2020 Covenant outbreak, he said.

“In light of the market efficiency of the crypto markets, only changes in the outlook of the crypto industry, as expected, will lead to price changes,” Coinbase said.

He said crypto markets have seen the highest returns in the last five years due to the adoption of partial institutional and retail investors, and the foundation of web3.

With the rise of inflation in the crypto market, the declining value of major crypto currencies, and the escalation of wars in Russia and Ukraine, as well as rising interest rates, investors have been fleeing dangerous assets such as crypto. Technological stocks have fallen for similar reasons.

At CityAM

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