Even if Bitcoin was able to catch after the dramatic price fall first, the average Performance still deep in the red. This negative image is also a manageable volatility of 3 percent and a passable correlation with change of the comparison markets, nothing.
Dr. Philipp Giese
6. October 2019BTC$8.167,52 -0.60%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 step by step together with the markets
As of last week the Bitcoin price to all of the comparison markets have a positive correlation. While the coupling of Bitcoin the DAX is very weak, the rest of the correlations, and in particular to the S&P 500 and Gold significantly higher:
we Consider the temporal development of the correlations is the only thing you notice is that the coupling to the S&P fell 500, nevertheless, strongly:
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You will feel at the last week reminds. Overall, the absolute mean correlation with the other markets, such as in the last week at eleven percent. Thus Bitcoin has the second smallest absolute correlation in our market comparison, only Oil behaves with a correlation of six percent, independent of the rest of the markets. The Nikkei Index and Gold are not removed with correlations of respectively 18 and 17 percent, however, far from Bitcoin. Taking into account compensation effects, a completely different picture: Although the price of Bitcoin has still a correlation of eleven percent to the rest of the markets, but the Nikkei Index, Oil and Gold behave with 9 percent, 4 percent, and -5 percent, which is much more independent.
volatility remains stable at just under 3 percent
In the last week did little with respect to the volatility. The volatility of the Bitcoin price is still almost 3 percent and is thus at the height of the volatility of Oil Futures:
Bitcoin price still the class of the last
Of course, the fall of 24. September has left behind its traces. The Bitcoin price is currently even worse than in the previous week. The average daily Performance is currently at -1 percent. In contrast, the Performances of the compared assets move to Zero:
when looking at the development of a hypothetical, one-time investment over the course of the last month of the quarter, since the beginning of the year and for a year, confirms what many Hodler already:
benefit long-Term investors. Especially those who had invested at the beginning of the new year in Bitcoin, had not been affected by the recent price slide too. In contrast, those who were in the last Bull Run, went All-in had, today, a strong Minus: you had to approximately, suffered a 25 percent loss:
The message that Bitcoin is worth as a long-term Investment for institutional investors is a positive Signal. Bitcoin is not just a short straw fire, which brought temporary gains. It’s the same undoubtedly, independent of the other markets and currently has an attractive low volatility.
data on 4. October cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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