OPINION: Cryptocurrencies could fall further if the poor performance of US stocks evolves into a broader correction

Cryptocurrencies could fall further if the poor performance of U.S. stocks evolves into a broader correction, said Joel Kruger, strategist at LMAX Group, in today's market update. "At this point, we believe the biggest risk to crypto assets is that the U.S. stock market is grossly overbought and may be on the verge of collapsing, a correlation that is by no means absolute, but there is evidence that a significant stock market pullback could pressure crypto assets, at least for the time being", the analyst said. The Nasdaq was down 1.8 percent and the SP 500 was down 0.9 percent at midday in NY, data showed. Bitcoin, which climbed above $59,000 earlier in the day on USA inflation news, is now down 0.6 percent to near $57,500.