What happened this week in the Crypto markets?

Too Long; Didn't Read

After posting their worst December in 87 years, stocks bounced back in spectacular fashion in January as the S&amp;P 500 Index rose 2.0% last week to finish January 8% above its year-end closing level. The stock market has now gained 16% since the December 24 lows, after <a href="https://www.zerohedge.com/news/2019-01-30/eod" target="_blank">Mnuchin called the banks</a> to force reassure them. We’ve highlighted the lack of correlation between the stock market and the crypto markets many times in the past, so the equity returns themselves don’t matter much to crypto as an asset class. What does matter is <strong><em>why </em></strong>this rally occured. The Fed has done a complete “about face” on its policy, ignoring strong employment data and inflation figures which normally drive motivation, and instead have focused purely on stock market returns and sentiment. As our friends at Ikigai stated last week, “the now dovish Fed is great for risk-on assets and validates the idea that Central Banks are irresponsible, thus reinforcing Bitcoin’s original value proposition.” Once again, we remind all investors, even those who think digital assets are irrelevant, to remember <a href="https://medium.com/@omid.malekan/the-original-crypto-bull-thesis-revisited-reinvigorated-76ac83c44ad9" target="_blank">why Bitcoin and other cryptocurrencies exist in the first place</a>. You can only push something so far until it finally breaks.