Altcoins and small cap stocks continue to be highly correlated

CN
1 hour ago

Altcoins and small cap stocks continue to be highly correlated.

The annual correlation between Total 3 and the Russell 2000 has held around 0.75 since early 2024, meaning both markets are responding to the same underlying liquidity and risk appetite forces.

What makes this interesting is how the shorter term readings behave. The 30 day and 90 day measures act like oscillators, swinging between periods of tight linkage and temporary dislocations.

Both have recently fallen toward the lower end of their historical ranges, but the long term trend remains positive.

In previous cycles, similar setups have preceded mean reversion and catch up moves in the lagging asset.

If macro conditions remain supportive and RUT sustains its breakout, this could be a positive sign for Total 3.


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