the recent consolidations have changed nothing to the fact that Bitcoin is also in this week’s Top-Performer. The volatility is still about three per cent, and the coupling to the traditional markets continue to be very low.
Dr. Philipp Giese
14. April 2019BTC$5.150,08 1.31%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. 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, Dax and Nikkei, Oil and Gold.
How to develop the relationship between Bitcoin and the traditional markets?
The coupling to XRP has fallen back slightly, but still slightly larger than in March:
As in the last few weeks, you can focus compared with the traditional markets on Bitcoin.
correlation: crypto-currencies vs. traditional market
Furthermore, the Bitcoin exchange rate and the S&P 500 Index are correlated. The correlation of the Nikkei Index is also very low, while the DAX and Oil positive couplings. The strong anti-correlation to Gold continues to exist:
The Situation is the last week similar. Gold continues to be correlated to Bitcoin, the S&P 500 and the Nikkei Index have little correlation, and the DAX, and Oil are correlated to Bitcoin:
Overall, the absolute mean correlation Bitcoins with other markets, at 28 percent. You must share the first place with respect to decoupling in this week with Gold. Taking into account the compensation effects due to any of the anti-correlations, the picture is more extreme. Although Bitcoins coupling is to the other markets, with 22 per cent, the second smallest – closely followed by the Nikkei Index, which can currently produce 25 percent of power generation. The independent Asset continues to be Gold which has a correlation of only ten percent.
Medium Performance, Bitcoins continue to be on top of all Assets
The rate of explosion of 2. April reflected, of course, on the volatility. Instantaneously it shot to 3.5 percent. At this Level, you could hold stable:
Although not able to expand Bitcoin the distance to the remaining Assets, however, the mean daily performance continues to be significantly above that of the comparison assets. While the S&P 500, DAX, Nikkei and Gold have more-or-less a Performance from Zero, could the Oil have in the meantime significantly better. Currently everything looks, however, as the Oil would want to join the dance around the zero line:
Despite the slight Sell-Off in the last few days Bitcoin is also since the beginning of the year the best performing Asset:
Oil and Bitcoin head-to-deliver still-to-head race
looking at the cumulative Performance since the beginning of the year, the Situation has improved since the last week easily. Although there would be risks with an Investment in Oil is still better, the distance is decreased temporarily to a Minimum. Even after the recent consolidation, the head-to-head race still to be decided definitively. All of the other Assets are significantly behind these two:
Bitcoin remains an interesting Asset for institutional investors: Its independence from the rest of the market, a high, but still manageable volatility and a very good Performance and are, undoubtedly, reasons for institutional investors, Bitcoin look at it more closely.
data on the 5. April cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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