The correlation between digital assets and the U.S. stock market has almost reached an all-time high, according to correlation research, suggesting that the macroeconomic variables that drive the stock market are also affecting the cryptocurrency market. Data compiled by Bloomberg shows that the metric measuring the 100 largest digital assets has a 40-day correlation coefficient of about 0.67 with the S & P 500 Index, a level that was only surpassed in the second quarter of 2022, when it reached 0.72. A coefficient of 1 indicates that the asset is moving in exactly the same direction, and a coefficient of -1 indicates the exact opposite. Last week, the Federal Reserve slashed interest rates by 50 basis points, kicking off an expected monetary easing cycle. Caroline Mauron, co-founder of Orbit Markets, a liquidity provider for digital asset derivatives trading, said: "Macro factors are currently driving cryptocurrency prices higher and this trend should continue throughout the Fed easing cycle unless we see a cryptocurrency-specific black swan event." The focus this week will be on comments from Fed officials and the release of the US personal consumption expenditures price index. "We think the speakers are more important than the PCE inflation data because what the market is trying to understand right now is the reaction function of the Federal Open Market Committee," said Sean McNulty, head of trading at liquidity provider Arbelos Markets.