the price explosion left a bitcoin Performance about all of the other Assets are on the rise. Thus the monthly volatility increased, but remained at approximately three percent. Furthermore, the Bitcoin exchange rate behaves very independently from the classical market.
Dr. Philipp Giese
On 7. April 2019BTC$5.135,98 2.52%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, BTC has dedicated to 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?
In contrast to the previous weeks is the coupling to XRP now is very high and hardly differs from the rest of the market:
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:
While the rest of the Trends of the last few weeks have confirmed that the negative coupling to Oil, a positive:
Overall, the absolute mean correlation Bitcoins with other markets, with 26 percent still the lowest. Even in consideration of compensation effects by any of the anti-correlations, the picture looks similar. Bitcoins coupling to the rest of the markets with 20 percent the second smallest. Only Gold can provide a coupling of only eleven percent, an even lower correlation to the rest of the market.
Medium-Performance bitcoin fails other Assets…
Of course, the explosion from the 2. April reflected, of course, on the volatility. Instantaneously it shot to 3.5 percent and doubled accordingly. Thus, the monthly volatility of Bitcoins is significantly above the classical Assets:
After the Performance between the 26. March and 1. April was about like that of Oil rose thanks to the aforementioned price jump rapidly. Although the average monthly Performance went down in the Wake of the consolidation of the last few days, but Bitcoin is still one of the Top performers:
In the virtual forest of leaves, some of the Thesis was that the crypto-Ecosystem would beat the classic market. On the basis of the data presented, you should be able to this statement to confirm. And indeed, a look at the average Performance since the beginning of 2019, confirmed that the current rate increase raised Bitcoin on all comparative assets:
… but Oil is the best Asset for 2019
Whether this consideration alone, however helpful, may be doubted. An investor would have stuck to new year 2019 in the various Assets and money, he would have driven with the Oil better. Thanks to the recent price increase in Bitcoin would have been, however, at least the second-best Asset: for The sake of Fairness, it should be emphasized, moreover, that in this analysis, in contrast to the above-linked, the focus on Bitcoin is.
either way, 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 speak for Bitcoin.
data on the 5. April cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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