Bull Trap Warning: Crypto Now Braced For A March Earthquake After $200 Billion Bitcoin And Ethereum Price Rally

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Bull Trap Warning: Crypto Now Braced For A March Earthquake After $200 Billion Bitcoin And Ethereum Price Rally
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Bitcoin, ethereum and the wider crypto market has become closely linked to the stock market in recent years.

cryptocurrencies, but some fear the rally may be short-lived."We think March is a high-risk month for the next leg lower in stocks," Morgan Stanley analysts led by Michael Wilson wrote in a note, pointing to historical data that shows bear markets often pause between quarterly earnings seasons before falling further.

"Stocks tend to figure it out a month early and trade lower and this cycle has illustrated that pattern perfectly," Wilson's team wrote, adding:"With uncertainty on the fundamentals rarely this high, the technicals may determine the market’s next big move." The bitcoin, ethereum and crypto market has traded in line with high-growth tech stocks since late 2020, surging to never-bef0re-seen highs before suffering an almighty crash as Federal Reserve began hiking interest rates and sucking liquidity out of the system a year ago.

However, Citi researchers have found bitcoin and crypto's"correlations with equities have continued to decline from last year's peaks," according to

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