Ethereum’s Connection to Wall Street’s Risky Assets

Joao Wedson, a strategist, highlights the link between Ethereum and small-cap stocks. Both assets reflect investor confidence in higher-risk assets as economic liquidity increases, with small-cap stocks and altcoins often benefiting first. Charts from Alphractal demonstrate that Ethereum and the Russell 2000 have been moving almost in unison since 2021, suggesting shared market cycles, particularly during periods of optimism leading to synchronized gains. This correlation suggests a deeper connection, as both markets are sensitive to similar macro factors like liquidity conditions, rate expectations, and investor sentiment.