The correlation Bitcoins to the classic market is currently strongly negative. This is accompanied by a current negative Performance is accompanied by a high volatility.
Dr. Philipp Giese
28. July 2019BTC$9.498,00 0.08%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 the Bitcoin Kursesdie 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. Especially the extreme anti-correlation between the Bitcoin price and the Nikkei Index. The rest of the correlations are rather low. The S&P 500 and Gold are Bitcoin positive, Oil and the DAX are negatively correlated:
the coupling to The S&P 500 rose further into Positive and is currently as high as the Gold. In contrast, the correlations of the DAX and Oil in the descent:
Overall, the absolute mean correlation Bitcoins with other markets, with 17 per cent in the midfield. The entire correlations of Oil and Gold to the rest of the markets with 15 or 12 percent lower. Taking into account compensation effects, the image of the last week is confirmed With a negative correlation of 9 percent, Bitcoin is clearly anti-correlated than Gold (-4 percent). All other Assets are correlated in the Mediterranean with the rest of the market is positive.
volatility as high as it was long, Returns a
break in The volatility of Bitcoins is still very high. It is still above six percent. Although she could not rise above seven per cent, but significantly higher than the volatility of the comparative assets:
Bitcoins volatility may have fallen, but is still approximately at the level of the volatility from the beginning of 2018 and the beginning of 2019:
Unfortunately, this increase in volatility is accompanied furthermore by a rising level of Performance. On the contrary, the confirmed downward trend of the last week was continued so that Bitcoin had over the past month, a significantly poorer Performance than the comparison assets:
If you look at the cumulative Performance since the March 2018 has developed, this image. Directly speaking, investors would have had to-date with any other Asset except Oil and more success, if you don’t) have invested in March 2018 (and otherwise in this:
The result of last week’s remains: high volatility coupled with a poor Performance of the Asset is just not particularly attractive to institutional investors. Only the correlation of Bitcoin to the rest of the markets confirmed Bitcoins independent behaviour in comparison to Gold & co. is Currently the price of Bitcoin moves sideways, but analysts will be watching the behavior of bitcoin in the vicinity of the current Support and Resistance lines.
data, unless otherwise specified, at 27. July cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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