### **📈 Crypto & Stocks Are Back in Close Relation! What Does It Mean?**
**🔍 Key Points:**
- **Crypto & stock correlation increases** – Bitcoin (BTC) and altcoins are now moving in sync with **S&P 500**.
- **Total crypto market capitalization rises 8.5% since March**, while S&P 500 drops 5.3%.
- **Fed liquidity is a key factor**: Plans for monetary easing push risk assets (including crypto).
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### **💼 Stocks Remain Strong Despite Trade War**
- **S&P 500 holds at 5,635** despite rising US-China import tariffs.
- **Resistance from corporations**:
- Microsoft (**revenue +13.2% YoY**) & Meta (**profits exceed expectations**) show resilience.
- Companies are relocating production out of China to avoid tariffs.
- **Positive signals**: US & China begin to provide tariff relief in certain sectors.
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### **🔄 Will Crypto & Stocks "Decouple"?**
- **In 6 months, crypto outperforms 29% vs S&P 500 (-2%)** → **not always moving together**.
- **But in the short term, high correlation** due to:
- Investors still see crypto as a **risk asset**.
- Fed policy (liquidity) affects **stocks & crypto simultaneously**.
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### **🚀 Opportunities for Crypto?**
✅ **Fed liquidity** could be a catalyst for BTC & altcoin price increases.
✅ **Outperform stocks** in the long term → potential decoupling if the economy stabilizes.
⚠️ **Risks**: A global recession could pressure **both stocks and crypto**.
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### **📊 What to Watch For?**
- **Fed policy** (will it really add liquidity?).
- **Developments in the US-China trade war**.
- **Corporate earnings reports** (real economic strength).
