the the coupling between The Bitcoin price and the traditional markets is still minimal. Similarly, the volatility has fallen to values that no longer have we seen since the beginning of October. Thanks to the course, jump in front of a week, the Performance is increased almost to the level of the comparison assets.
Dr. Philipp Giese
17. February 2019BTC$3.723,93 2.53%Facebook Twitter LinkedIn xing mail
For some months now, we keep track of how Bitcoin fails in comparison to traditional markets. This is not simply a comparison of the Performance. Institutional investors are interested in Bitcoins claim to be a non-correlated, stable Asset, extremely. Some time ago, I have dedicated myself to the part of a guest contribution on the €uro Fund research, 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 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 small, but it should have at least over a longer period of time, a certain degree of stability.
How to develop the relationship between Bitcoin and the traditional markets?
Since the beginning of November, we are therefore pursuing, and how Bitcoin compares to traditional markets. We, therefore, pay attention to 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. Since the correlations within the crypto market behavior very similar to BTC for institutional investors, is currently the most interesting, we focus mostly on the Bitcoin price. As a comparison, assets in traditional markets, we consider indices S&P 500, Dax and Nikkei, Oil and Gold.
Read also: crypto – and traditional markets KW4 – Bitcoin is independent of the classical market
XRP continues from the Top 3 the most decoupled Asset. We will monitor that, of course. But we have to be honest here: The correlations of the Top 3 crypto currencies are still very high:
As Bitcoin is the leading currency within the crypto Ecosystem and institutional investors as the first on this view, it is sufficient, if we focus when compared to the traditional market on Bitcoin.
correlation: crypto-currencies vs. traditional market
“grow” to denote the coupling of Bitcoins to the traditional markets: While the S&P 500, and Bitcoin behavior is almost completely uncorrelated to each other, are currently the prices of Bitcoin and the Nikkei Index each other in opposite directions. Similarly, the correlation between the DAX and the Bitcoin rate to say. Overall, the coupling of bitcoin is to the traditional markets continue to be quite low. In absolute terms, the price of gold moves, however, at most independent of the comparison assets:
Meanwhile, the correlations to Gold, Oil and the S&P 500 has risen to the Positive, only the DAX and the Nikkei Index are correlated to the Bitcoin anti:
Overall, the absolute mean correlation Bitcoins with other markets, approximately 31 percent. Gold was within the last month, a slightly higher decoupling with 28 percent. We take into account compensation effects by any of the anti-correlations, Bitcoin is correlated only to nine percent for the rest of the market.
Read also: Bitcoin, Ethereum, and Ripple – rate analysis KW01 – sideways motion builds pressure on the
Performance of Bitcoin almost back to the amount of the other Assets
thanks to the previously tracked sideways phase has decreased the volatility of the Bitcoins even further and is aiming for currently, the two percent. The influence of the price jump last week, is now only a temporary Spike:
the volatility is still higher than that of the comparison assets, but is risen, in the meantime, below Level, which was observed in the case of Oil recently. The volatility much closer to the classic Assets.
The recent price jump was some Bitcoin no better average Performance than the other Assets. The distance to these is, however, now very scarce:
a Total is Bitcoin an interesting Investment for institutional investors. The correlation to the traditional market is still very low, the volatility is decreased to a Level that can take into account an Analyst and also the Performance has become better. Let’s see if the recent Statements by JP Morgan’s currencies “own Crypto” to lead a growing interest in Bitcoin in the classical sector.
data on the Basis of cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org
You’re a Blockchain or crypto-Investor? : The digital crypto-compass is the first market letter for digital currencies, and provides you with monthly exclusive assessments and comprehensive analysis of the current situation on the Blockchain and crypto-markets. the for free Now
