Cryptocurrency's Christmas Rally Could Indicate Bitcoin's Independence from U.S. Stock Market

One of the oldest questions in cryptocurrency is whether Bitcoin is tethered to the performance of the overall stock market.

The current crypto market rally could indicate that Bitcoin and other altcoins are independent from dips in U.S. stocks.

Up until the Q3 of this year, the stock market has performed exceptionally well compared to the cryptocurrency markets.

As the crypto markets slogged through a year of losses, the U.S. stock market was experiencing another strong year of performance coming out of 2017.

As of this week, the cryptocurrency markets have experienced a strong Christmas rally.

A long-standing question among crypto traders has been whether the U.S. stock markets and cryptocurrency markets are correlated.

Some have even speculated that Bitcoin could act as a safe haven during stock market downturns, although most major news outlets including Forbes and CNBC have dismissed the claim.

As the stock market tumbles, the recent crypto rally could reaffirm that the stock markets and cryptocurrency market are untethered.

Even if Bitcoin is not deemed a conventional safe haven asset, independence from the U.S. stock market could make crypto useful for a host of different trading strategies.

Fund managers may want to include Bitcoin in diversified portfolios, retirees may include crypto in their 401Ks, and speculators can rest at ease knowing the stock markets won't bring down cryptocurrency with it.