Rating provider S&P Global has examined the relationship between crypto assets and macroeconomics in a new report. Its conclusion is a firm “maybe” and the details are complex, mainly due to “idiosyncratic events” such as the crypto winter , geography and the industry’s short history.
Crypto assets have a different value proposition from traditional assets and different performance drivers, the S&P report noted in its introductory paragraphs, but the interconnectedness of the crypto ecosystem and macroeconomics is inescapable. The S&P analysts compared the S&P Cryptocurrency Broad Digital Market Index (BDMI) with other financial indicators to assess the extent of that interconnection in five areas.