The correlation of bitcoin with the rest of the markets declined again to a Minimum. The same applies to the volatility of and currently, unfortunately, on the Performance say.
Dr. Philipp Giese
15. September 2019BTC$10.299,42 -0.04%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: Bitcoin stands against the classical markets
As of last week, it is noticeable that the Bitcoin price developed very independently of the three indices S&P 500, DAX and Nikkei. There is Oil, there is a negative correlation, while the coupling to Gold is still positive. Regardless of Bitcoin is the strong anti-correlation between Gold and the Nikkei Index, and a relatively strong correlation between the DAX and the Oil falls to continue:
Recently, the correlation between the Bitcoin could exchange rate and Gold increase to over 20 percent. Similarly, the correlations of Bitcoins rose to other Assets easily – if you want to call with regard to the DAX, the Nikkei Index and the S&P 500, like this:
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Overall, the absolute mean correlation with the other markets is 8 percent. Thus, the price of Bitcoin has continued by a wide margin the least coupling to the comparison assets at the classical market. The Nikkei-Index, the square two with respect to the absolute average correlation, is 18 percent. Taking into account compensation effects, we get a similar picture, With a negative correlation to the other markets of only minus two per cent, the price of Bitcoin is also under consideration of compensation effects, the most independent of all the Assets.
volatility of Bitcoins in a Plateau
The volatility from the Bitcoin price could fall further. Recently she could even fall below three percent. However, this is still significantly higher than the volatility of the classic Assets that move in an up, in the case of Oil, two percent:
Concerning the Bitcoin exchange rate, the volatility is now so low since may not:
Bitcoin is still on the rear seats
The low volatility and strong anti-correlation to the traditional markets as in the last few weeks of a negative Performance accompanied. This also means that Bitcoin light occupies since the beginning of December, the tragic closing in our market compared. Meanwhile, the Performances of Oil and Gold are also dropped in the negative range. In the last days increase in the Performance of the Bitcoin price can be a little bit of hope to rise, that the Performance can be re-directed in the positive range:
is a long-term perspective Bitcoin, although not in the last place, but also in the negative range. In the comparison of a hypothetical Once-Investments at the beginning of March 2018, would have currently cut off only Oil is worse than Bitcoin. Compared to the previous week, were able to position themselves so again the indices, the DAX and the Nikkei about Bitcoin. Furthermore, so an Investor with a one-time Investment in Bitcoin in March of 2019 would have suffered currently, there is a slight Minus:
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What’s left to say? Bitcoin moves since now over a month of sideways. Positive is the low volatility and independence of the classic markets, is without a doubt, even with more negative Performance.
But the sideways phase between September and November 2018, hovering like a portent above the current market situation. At the time, the long sideways phase, ended in a dramatic Crash. A Test of the moving average of the last 20 weeks is also. This Support is at the moment at about 9.500 dollars.
data, unless otherwise specified, at 6. September cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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