thanks to the recent price developments of Bitcoin could strengthen its Performance in comparison to the reference asset on. Even if someone would have invested in may 2018, would have gone with a Plus.
Dr. Philipp Giese
23. June 2019BTC$10.705,00 -1.92%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, the sliding end of the volatility and the sliding Performance. The 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
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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 of the Binance-Coin-rate, the price of Bitcoin SV and, again, part of the Top 10, Tether-USD continue to call. Otherwise, the correlations are themselves at least 50 percent:
Bitcoin is still King and since the interest on the part of institutional investors is still in the case of Bitcoin, we consider its correlation to traditional markets. As in the last week are correlated to Gold all comparative assets to Bitcoin negative, with the Nikkei Index and Oil have only a weak coupling.
The correlation between the Nikkei Index and the Bitcoin exchange rate could temporarily rise into positive territory, but fell back into the negative range:
Overall, the absolute mean correlation Bitcoins with other markets at 18% and is almost on a par with the absolute correlation of the Nikkei Index. Only the absolute coupling of Gold to the rest of the markets in ten percent significantly less. Taking into account the compensation effects due to any of the anti-correlations, a negative correlation of 10 percent. Here, too, Gold is currently with a correlation of six per cent as the entkoppelste all of the comparison assets.
volatility has now fallen below four percent. While the volatility of the rest of the market is still below one percent and hardly moving, is the increased Oil more:
Performance of Bitcoin to be slightly below the comments of Gold
The latest development of the Bitcoin price has been in other Places. so it’s no wonder that this development continued. While the Performance from the Bulk of the comparison commutes assets, more or less, to Zero, around, or in the case of Gold, even negative, can Bitcoin have an average daily gain of one percent:
This image is reflected understandable in the overall Performance since the beginning of 2019. Bitcoin has greater Returns than all other comparison assets:
In the last few weeks, we have looked at the peaked Performance since August. We say that someone is on 1. August would have put money in Bitcoin, in much more Profit than you would with any other Asset would have to be made. With the recent price increase you can play this virtual “All-In”Experiment. Someone had plugged in may 2018 money in Bitcoin, he would have to endure a Drawdown of approximately 60 percent. In spite of the bear market, he would have beaten now all of the other Assets:
The picture above could see enthusiasts, with some justification, as proof of the value of a Bitcoin-long-term investments (or the coin of the Hodlns). The picture shows, however, a thing that might be for an institutional Investor is difficult. A Drawdown of 60 percent shows that Bitcoin is still a risky Asset. Interest in this risky Asset without a doubt is still. To be attractive is the low correlation Bitcoins to the rest of the market. This coupled with manageable volatility and the recent price increases of Bitcoin to continue to press for institutional investors to be extremely interesting.
data on 22. June cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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