The correlations from the Bitcoin rates of the three indexes S&P 500, the DAX and the Nikkei fell further into the Negative, but the correlation rose to Gold. With the recent Bull Run, the volatility increased again. Despite the recent price correction remains, for over a month, the best performing Asset is considered Bitcoin still.
Dr. Philipp Giese
30. June 2019BTC$11.213,00 -6.80%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:
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-correlated currencies to be extremely strong with each other. The only two really notable exceptions, the price of Bitcoin, SV and Tether-USD continue to call. Otherwise, the correlations are themselves at least 50 percent. The only interesting thing is the increased correlation between the rates of Bitcoin experts and Bitcoin Cash:
The stock market indices S&P 500, DAX and Nikkei are correlated to Bitcoin negatively, while Gold to the Bitcoin exchange rate has a positive correlation. is Oil and Bitcoin are, however, decoupled almost completely:
The correlation between the Nikkei Index and the Bitcoin exchange rate fell more in the negative range. The coupling of the Bitcoin exchange rate to Oil increased, while otherwise the correlations are more or less on the same level as in the last week:
Overall, the absolute mean correlation Bitcoins with other markets at 22% and is almost on a par with the absolute correlation of the Nikkei Index. The absolute coupling of Gold or Oil to the other markets, with eight percent, or 20 percent lower. Taking into account the compensation effects due to any of the anti-correlations, a negative correlation of minus 14 percent. Here, too, Gold is currently with a correlation of minus one percent as the entkoppeltste all of the comparison assets. The Nikkei Index is only nine per cent from the rest of the market is decoupled as Bitcoin.
increase With the recent price and the subsequent consolidation has increased the volatility significantly. She stands just under five percent. In contrast, the volatility of the comparison behaved assets in the area. Even Oil remained constant at around two per cent:
Performance of Bitcoin to be slightly below the Gold
After the recent weeks it is almost pointless to emphasize that the Performance Bitcoins is significantly above that of the comparison asset is located. Furthermore, the classical Assets around to commute at an average daily performance of well under one percent. After all, the Performance of Oil could rise again in the positive area:
In the last week, we, like someone had stood there, in the beginning of may, 2018 money in one of the Assets put should have been considered. We extend the view and look at how the various Assets since the beginning of March 2018 had the same behaviour.
in fact: as we See from the recent consolidation, would have also beaten then Bitcoin, all of the comparison assets. The youngest of the Dump led to the Bitcoin needs to argue price with the S&P 500 and Gold in the first place – but despite a Drawdown of about 70 percent, far above play along:
As the 29. June described, you should not trust the (crypto-)spring uncritically. Yes, Bitcoin is going through a seemingly absurd rally, whether it lasts, however? Also from the point of view of institutional investors with a Re-Test of fundamental Support would be more of a confirmation as a threat to a bull market.
you can See from this shadow side of the parabolic-in uptrend, remains to continue to say that there are enough points for institutional investors: The volatility is manageable, and also the correlation to other Assets is low. If you look at the General market situation, the trade war between China and the United States and, especially, exotic news from the precious metals in the universe, could investors with regard to the absolute limitation of the Bitcoin-Supplies are noisy.
data on 22. June cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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