And the triumph of Bitcoins: Continue from the rest of the market, Bitcoin was able to expand decoupled its supremacy, and in the meantime, the bearish trend since the beginning of August to compensate.
Dr. Philipp Giese
3. June 2019BTC$8.696,00 1.33%part Facebook Twitter LinkedIn xing mail
Since the beginning of November, we keep track of how Bitcoin fails in comparison to traditional markets. This is not a trivial comparison of the Performance. Institutional investors are interested in Bitcoins claim to be a non-correlated, stable Asset, extremely. In a guest contribution on the €uro Fund research dedicated to BTC-ECHO the question of whether Bitcoin and the strongly correlated crypto market would be a good addition to classic portfolio. This question is the institutional investors in the crypto-market is interested in, less of a hope of a new Bull Run like the end of 2017.
in Order to clarify the Suitability of classical Portfolios can be considered an Investor in various sizes. For one, it would be interesting to see whether and how much Bitcoin is linked to traditional markets. On the other, a stable Asset for a long-term Investment is attractive. The volatility of the asset do not need to be extremely low. You should have at least over a longer period of time, a certain degree of stability.
We pay attention in this series of articles, therefore the correlation in the last month, on a sliding correlation of a continuous volatility and a sliding Performance. The last three values are calculated for each day based on the last 30 days. As a comparison, assets in traditional markets, we consider indices S&P 500, Nikkei and Dax, as well as Oil and Gold.
correlation: crypto-currencies vs. traditional market
In the last week we have started the correlations in the Top Ten among themselves to look at something. Since then, the occupation of the Top Ten has something geändertm especially Bitcoin, SV is increased to eight. The majority of crypto-currencies has to each other unit with high coupling. The only two exceptions Binance Coin and Bitcoin SV, which behave strongly differently than the Rest of the crypto currencies:
are we Come to the comparison between Bitcoin and the traditional markets: For Bitcoin, the Situation of the last week is quite similar. In addition to the three indices, the S&P 500, the DAX and the Nikkei a negative coupling to Gold decoupled from a positive and from Oil seems Bitcoin is currently almost. Beyond Bitcoin, the strong anti-striking correlation between Gold and the Nikkei-Index:
As expressed, the Situation is almost the last week of the same. The correlation to Gold has increased slightly, aonsonsten remained the couplings to the comparison of assets almost equal to last week:
Overall, the absolute mean correlation Bitcoins with other markets at 17 percent. Only Gold is decoupled with 15 per cent, similar to the other comparison assets. Taking into account the compensation effects due to any of the anti-correlations, a negative correlation of seven per cent. Both Gold and the Nikkei Index are from the rest of the markets decoupled: Gold has a negative correlation of four per cent, while the Nikkei Index has only one percent.
with Respect to the volatility of the Situation has changed compared to the previous week, barely. It is still about four percent. It is interesting to note that since the beginning of the Mail, the volatility increases also from the DAX, the S&P 500 and in particular from Oil. For Oil is now just under two percent:
Bitcoin from the end of the year climbed deep
We know the image: the Performance of Bitcoins is sovereign over that of the comparison assets. In addition to Gold, this is for all reference assets in the negative range. This is especially bad in the case of Oil, whose average daily Performance is 0.5 percent:
According to Bitcoin since the beginning of 2019, the by far the best-performing Asset. Unlike the comparison of assets, the Performance can boast a Rise in Bitcoins since the beginning of may. In the case of Gold, this has remained just under nine percent, while the Performance of comparison of assets since mid-April in the Fall:
In the last week we have considered whether the Performance could make up for Bitcoins, the dramatic development after the Crash of mid-November 2018. How is it with the previous highs? To check this, we expand our view and look at the time since the first of August 2018. In fact, The cumulative Performance of Bitcoins exceeds even then, the comparison of the assets, if we require the price developments since the beginning of August 2018, taking into account stab. You would have had with almost all of the comparison through an Investment on the first of August, losses only Bitcoin and Gold have made a positive balance sheet:
you can Continue to claim the Bitcoin, despite it’s recent slump, as compared to the assets. The low correlation to the comparison of assets would be another reason for institutional investors to invest in Bitcoin. The high volatility makes it a bit of a Worry: fluctuations, this height can, of course, go Down.
data on 01. June cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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