Why do US stocks impact the crypto market?

👀 Whenever US stocks rise, Bitcoin often follows. When US stocks fall, the crypto market tends to drop too.
❓ Is this a coincidence, or is there a connection?

🤞🏼 Example: Funds are like “water,” US stocks and crypto markets are “pools.”
When investors feel confident, they add funds to both pools (stocks & crypto). When there’s fear, they withdraw funds, often moving away from crypto.
🔹 US stocks rise ▶️ Funds flow into BTC, ETH.
🔹 US stocks fall ▶️ Funds exit crypto, move to safe-haven assets.

🌰 Another point: Crypto is like a “leveraged version” of US stocks.
Crypto is more volatile, but its price movements often follow US stocks with more intensity.
Reasons:
🔹 Crypto is speculative and driven by emotions.
🔹 Crypto lacks strong fundamentals like stocks do.
🔹 Crypto is seen as a new asset class, often moving in sync with tech stocks.