the the coupling between The Bitcoin price and the traditional markets is currently lower than all of the other Assets with each other. Thanks to the course, jump in front of a week, the Performance is increased on the comparison of the assets.
Dr. Philipp Giese
24. February 2019BTC$3.724,45 -5.78% part 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: Bitcoin, XRP, and Ethereum – rate analysis KW52 – Current correction for newcomers to enter?
As in the past few weeks is XRP still the entkoppelste Asset of the Top 3. Since last week, the correlation is not dropped, however. One way or the other, the correlation 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 on currencies when compared to the traditional market on the biggest of all Crypto.
correlation: crypto-currencies vs. traditional market
Similarly, by grow like in the past week, the correlations between the mother of all crypto-currencies and the traditional markets. While Oil, Gold and the S&P 500 have a positive correlation with Bitcoin, this is about DAX, and Nikkei negative. But the result is that Bitcoin is the one of all other markets entkoppelste Asset. The Nikkei Index has a similar low correlation to the rest of the market, which is due to the fact that the correlations from the Nikkei Index to the Bitcoin exchange rate and for the DAX to compensate for each other fast:
remained The correlations of Bitcoin to other Assets as in the previous week, so positive for Oil, Gold and the S&P 500, negative for the Nikkei and the DAX:
Overall, the absolute mean correlation Bitcoins is with the rest of the markets 30 percent. The mother of all crypto-currencies, as at least with the rest of the market coupled. We take into account compensation effects by any of the anti-correlations, Bitcoin is correlated only to 15 percent to the rest of the market, and is thus on a par with the Nikkei Index.
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Performance of Bitcoin, despite their lower volatility than other Assets
rose Clear: The upward movements of the last days led to a slight Increase of the volatility. However, the average volatility for the last 30 days remained at about 2.3 percent:
Yes, the volatility is still significantly above that of the comparison assets. You reached, however, slowly Level, you know the classic market.
Of course jump that lifted the Bitcoin price temporarily above US $ 4,000, made the long-Hoped-for Performance Bitcoins is now officially on the other Assets, even if this can certainly produce a slight upward movement is:
This is an interesting Investment: hardly any volatility manageable, and now also the market-beating Performance correlated. You can see it currently on the course: The interest in Bitcoin is increasing. Not only from the private investors, the institutional Investor.
data on the Basis of cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org
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