2020 Macro Overview: Traditional & Digital Asset Market Behavior, Part III

In the first research piece of this series, ‘2020 Macro Overview: Traditional & Digital Asset Market Behavior, Part I,’ we provided evidence of Pre-COVID-19 economic deterioration and financial system stress, arguing that the pandemic likely exacerbated a recession that was already on the horizon. Further, we made the case that short-term funding pressure in the traditional financial system likely contributed to the cryptocurrency market drawdown in Q4 2019.

Our previous research piece, ‘2020 Macro Overview: Traditional & Digital Asset Market Behavior, Part II,’ broke down the historic decline that markets experienced in Q1 2020, as well as the policy response by the Federal Reserve (the Fed). We also plotted the relationship between digital assets and traditional market metrics to challenge Bitcoin’s “safe-haven” narrative at this moment in time.