Since the Great Recession, the stock market has seemed to be closely tied to what the Federal Reserve is doing and the Fed has mostly acted to stimulate stock prices.Now, people are finding a correlation between the stock market and the prices of Bitcoin and Ethereum resulting from the vast amount of liquidity the Fed has provided markets.There is even indication that the price of these cryptocurrencies has mirrored stock market prices as the Fed had positioned itself to fight inflation.If the Federal Reserve does tighten up on its monetary policy, raising its policy rate of interest and shrinking its balance sheet, how will this impact the stock market and prices of crypto?We may be right around the corner from finding out the answer to this question.
