Crypto – and traditional markets: Bitcoin after entering the market

September 22, 2019

Currently, the price of Bitcoin in opposite directions moves to the rest of the market. The volatility has now fallen below the level of the Oil. Unfortunately, Bitcoin forms with respect to the Performance of the final light.

Dr. Philipp Giese
22. September 2019BTC$10.003,81 0.13%part Facebook Twitter LinkedIn xing mail

For almost 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 versus the DAX and the S&P 500

There has changed what: The strong independence of the markets is given. In comparison to the DAX and S&P 500 is a strong anti-correlation, which is shared by Oil and, to a lesser extent currently dominates. The Nikkei Index there is a positive correlation, while Gold and Bitcoin is to be independent of each other. In spite of these Changes in terms of Bitcoin, the strong anti-correlation between Gold and the Nikkei Index falls to continue:

Recently, the correlation between the Bitcoin price and Gold could increase to over 20 per cent, but fell back again heavily. Instead, the correlation is currently the Nikkei Index, at around 20 percent. Synchronous correlations between the Bitcoin price and the S&P 500 index and the DAX fell in the basement. You are now correlated to a 40 per cent anti with respect to the Bitcoin-course:

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Overall, the absolute mean correlation with the other markets in at a hefty 20 percent. The now well-known Position as a “unabhängigstes Asset” had to give Bitcoin this week. The prices of Gold, the Nikkei Index, and in particular Oil, with 18 percent, 16 percent and 9 percent, significantly independent from the market as Bitcoin. The picture is a similar, taking into account the compensation effects: a negative correlation to the other markets of minus 13 per cent, the price of Bitcoin is completely against the rest of the market.

Bitcoin price drop is more stable than Oil Futures

The volatility of Bitcoin exchange rate was able to continue. She has, in the meantime, the three percent long-term steps. Since rise time is equal to the volatility of the Oil Futures strong, is Bitcoin – the first Time in a long time – with regard to the exchange rate fluctuations under one of the great classic Assets:

Concerning the Bitcoin price has fallen, the volatility is now below the level from may. She is testing the sideways phase that we experienced until mid-November 2018:

Bitcoin is a closing

is still Unfortunately Bitcoin in the Performance is still one class the last. Even more so As a single Asset, it must present this week with a negative Performance. Gold, after all, the term “memory” and can point to neither profits nor losses in terms of Performance. The other Assets show a positive Performance, with the DAX and the Nikkei Index have the nose in front:

a long-term perspective, Bitcoin is 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 Bitcoin and Oil are fighting for the last place. Furthermore, so an Investor with a one-time Investment in Bitcoin in March of 2019 would have suffered currently, there is a slight Minus, in contrast to those investors who had invested in the S&P 500 or Gold:

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looking at the current Situation of Bitcoins in comparison with the traditional markets, the much-quoted impression of the calm before the storm. Bitcoin is now moving since the beginning of September in a large Triangle Pattern sideways. This Situation will currently be uninviting for long-term institutional investors. In a recently published article, investors should wait to see how the Triangle Pattern resolves.

data, unless otherwise specified, at 20. September cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.

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