I was just looking at this same thing today, I feel very uncomfortable with the amount of apparent correlation between crypto and wider stock markets.
At an institutional level, when market volatility rises, portfolio managers swap to 'risk-off' techniques to control the exposure of their portfolios to downside risk, this involves selling risky assets. With the increasing prevalence of investment bank and hedge fund money entering the space, I believe we will see crypto turn into a cyclical asset. What I am implying is that the price we pay for massive bull runs will be the huge sell-offs that happen when the wider stock markets become afraid.
I am not implying that this will be the case simply because I want my economic work to become more relevant, I would rather crypto become a hedge to the markets, but unfortunately this doesn't appear to be the case so far.
The good news is that economic conditions still look powerful and I think we still have a lot more money left to make in the short/medium term.
I agree, and I think Crypto will be a hedge in the years to come, but right now they still see it as the wild west. Yes the economy is still strong, we are seeing a massive correction on both the Dow and Crypto at the same time. However all of the money that poured in to make it run up happen is still here, even it it changed hands, so it will likely run up again when the conditions are right for it.