there’s No question that Bitcoin has developed in the last few weeks very well. Actually, the comparison was not obsolete assets, in the meantime, simply, even the slump of November 2018, could now be compensated.
Dr. Philipp Giese
26. May 2019BTC$7.970,00 -1.01%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, on a sliding correlation of a continuous volatility and a sliding Performance. The last three 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
We have seen in the last couple of weeks, the correlation between the Top 3 crypto currencies in more detail. Because of the little changes and the focus institution is located institutional investors on Bitcoin, we report on the correlations of the crypto-currencies with each other only when there is report value. As a bit of Eye-Candy here, however, is a correlation matrix of the Top 10 crypto-currencies:
The image has been normalized compared to the previous week, again. Among the three indexes S&P 500, DAX and Nikkei the price of Bitcoin anti-correlated to Gold there is a positive correlation and is Oil Bitcoin decoupled completely:
The coupling between Bitcoin and Gold rose in the last week again in the positive range. The correlation to Oil could also rise temporarily in the positive range again, dancing, but more to the zero line:
Overall, the absolute mean correlation Bitcoins with other markets, with 16 percent. Only Nikkei is decoupled with 15 per cent, similar to the other comparison assets. Taking into account the compensation effects due to any of the anti-correlations, a negative correlation of eleven percent. Again, the stock index Nikkei, its correlation to the other Assets at -12 percent, it is.
The volatility increased more than four percent. So that it is as high as it has been since the middle of January, not more:
Bitcoin from the end-of-year low
The average daily Performance is still significantly higher than that of the comparison of assets: During the Performance of which is negative, can Bitcoin have a medium daily Performance of 1.5 percent:
According to Bitcoin since the beginning of 2019, the by far the best-performing Asset:
We know from the last few weeks: looking at the cumulative Performance since the beginning of the year, is Bitcoin of the comparison assets. To see how much of the lost territory has made Bitcoin good again, we consider the cumulative Performance since the beginning of November 2018, has been developed. November 2018 we choose, because in the middle of November 2018, the Bitcoin price had to absorb within a short time, approximately 50 percent of the losses. Could Bitcoin be free from this Deep? Apparently, Yes:
Well, if the times is nothing: The Bull Run of the last few weeks, couldn’t lift Bitcoin simply on the comparison of assets. In fact, since April of 2019 followed the upward movement was enough to leave the ground by the end of the year 2018. Certainly one could talk about it here, that the soil would have happened, even if some, such as Tone Vays strike a note of caution.
data on 25. In may of cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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