Cryptos & Stock Market Have Connection, Says Wells Fargo Strategist

Cryptos & Stock Market Have Connection, Says Wells Fargo Strategist

Since last week, both crypto and the stock market had been experiencing a devastating sell-off, and both of them have stepped on a path of recovery this week. Hence, there have been raised lots of suggestions that both financial realms are somehow connected with each other.

For example, Jake Sylvestre, the founder of PhishTrain and a cybersecurity expert, hinted on the assessment of risk as the connecting point between two of them. But he is not the only one who thinks so.

Recently, in an interview with CNBC, Christopher Harvey, chairman of equity strategy at the trans-border banking and financial services business Wells Fargo, expressed a similar opinion. In particular, he said that the burst of a crypto bubble could even cause the traditional stock market to plummet.

Risk Connecting Markets

Harvey believes that investors may also start panicking when the traditional market goes down, so bitcoin will also experience a sell-off. He makes such conclusions coming out of February 5th market plunging.

The Wells Fargo top strategist also said that the best way to forecast the potential market changes, as well as prices of virtual assets, is to evaluate jeopardies.

"We think of it more as what we have to watch out for, what we have to ... tell our clients to be careful of. We don't make a call whether it's going to go up or down but that it's a risk in the marketplace, and it's really far out on the risk spectrum,” said Harvey.

By the way, Wells Fargo emphasized that within the following three-six months both crypto and traditional markets ought to trade correspondently. Harvey said, that if the company that he works for has a point, the whole world should witness the risk product soaring – there might be bids on the market of cyber assets in such case.