A little lost territory, was able to conquer back the price of Bitcoin again. However, its average monthly Performance is currently at Zero percent – a cancer response, as well as join assets.
Dr. Philipp Giese
4. August 2019BTC$10.680,00 -0.74%part Facebook Twitter LinkedIn xing mail
For over half a year, 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:
the correlation between the Bitcoin price and the traditional markets nThe volatility and Performance the Bitcoin-course
We pay attention in this series of articles, therefore, on these three sizes. You will be charged for each day on the Basis of 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
As it is known in the crypto sector: The crypto-currencies all March in Rank and file, follow the Bitcoin price. The only really notable exception is, as expected, the rate of Tether-USD. Otherwise, the correlations are with each other for significantly more than 50 percent:
we Come to the comparison between Bitcoin and the traditional markets. As of last week, the extreme Anti-correlation between the Bitcoin price and the Nikkei Index falls on. But also the DAX and Oil have significant Anti-correlations for the Bitcoin course, while Gold and the S&P 500 slight positive correlations:
Since the middle of July, the correlations between the Bitcoin exchange rate on the one hand, and DAX and Oil on the other hand, in March and continue to fall in the negative range. Similar can be said about the correlations Bitcoins to the S&P 500 and Gold: Since last week, both of which are falling back to the zero line:
Overall, the absolute mean correlation Bitcoins with other markets, with 16 percent, the same as the DAX and the Nikkei Index. The absolute mean correlations of Gold to other markets, with 14 per cent a little lower. Taking into account compensation effects, the image of the past few weeks has been confirmed: a negative correlation of 12 percent, Bitcoin is clearly anti-correlated than that of the DAX (-2%) and the Nikkei Index (-4 percent). All other Assets are correlated in the Mediterranean with the rest of the market is positive.
Performance of Bitcoin at the height of the comparison of assets
The volatility from the Bitcoin price could calm down a bit and is back below six percent. Of course, it is still significantly higher than the volatilities of the Assets from the traditional markets:
Meanwhile, the volatility of Bitcoin has fallen back to rate again to a bearable level:
The decline in volatility is accompanied by an increase in the monthly average Performance. The price of Bitcoin has no negative Performance, but the cancer of the decline of traditional Assets, whose Performances are all at approximately 0% per day:
If you look at the cumulative Performance since the March 2018 has developed, we can see that Bitcoin is trying to recover lost territory back conquer. He is at the end of the Assets. In front of the back of the poles to conquer-Position still needs to be placed a long way back:
a Total of is Bitcoin a more attractive Investment than in the last few weeks. Investors should continue to monitor in which direction of the course from its current sideways phase erupts. After all, the price (and thus the monthly Performance) is on the Decline. Similarly, the volatility seems to calm down. Together with a high anti-correlation to the traditional markets of Bitcoin can be an Asset in a balanced Portfolio of interesting.
data, unless otherwise specified, the 02. August cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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