Bitcoin and the traditional markets – Despite the sideways phase of the Top-performers

Even if the last few weeks have been marked by UPS and downs of the Bitcoin course, Bitcoin is the Best performing Asset. The recent movements have not led to increased volatility, which will soon go to the six per cent.

Dr. Philipp Giese
15. July 2019BTC$10.532,00 -0.84%part Facebook Twitter LinkedIn xing mail

For over half 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 the Bitcoin Kursesdie 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: crypto-currencies vs. traditional market

As it is known in the crypto sector: The crypto-correlated currencies to be extremely strong with each other. The only really notable exception is, as expected, the rate of Tether-USD. Otherwise, the correlations are themselves at least 50 percent:

The stock market indices S&P 500 and the Nikkei, and Oil Futures are correlated to Bitcoin negatively, while Gold to the Bitcoin exchange rate has a positive correlation. The DAX and Bitcoin on the other hand are decoupled almost completely:

it occurred that the coupling between the Bitcoin exchange rate and the German stock Index has risen since the end of June strong. To a lesser extent, the coupling between Bitcoin and the S&P 500 can say the same, however, this fell since the beginning of July. The Nikkei Index fell, finally, in the last two weeks strongly Negative:

Overall, the absolute mean correlation Bitcoins with other markets with 20 per cent more in the midfield. The absolute coupling of Gold or Oil to the other markets, with 14 percent and 19 percent lower, while the coupling from the DAX to the comparison markets, also 20 percent. Taking into account the compensation effects due to any of the anti-correlations, a negative correlation of 11 percent. Thus, the price of Bitcoin has the largest anti-correlation to the other markets. Clearly decoupled from the Nikkei Index of minus five per cent, and Gold with six percent.

The UPS and downs of the last few weeks, reflected on the average volatility of the Bitcoin exchange rate. Not only that, the five per cent, were overcome sustainable, currently the volatility is aiming for six percent:

if the volatility to the beginning of the year, this is no longer have been for Bitcoin since a year so high:

Performance of Bitcoin to the top

The image we now know: the classic Assets around to commute at an average daily performance of well under one percent. After all, they are all in the positive range. Bitcoins medium Performance oscillates in contrast, 1.5 percent:

we Look at the cumulative Performance since the March 2018 has developed. The last two weeks has led to that the cumulative Performance of Bitcoins currently in a head-to-head race with Gold and the S&P 500 returns. In the meantime, Bitcoin fell even below the cumulative Performance of the Nikkei Index and the DAX, was able to catch but again something:

We will need to how Bitcoin behaves more watch. Currently, the price seems to move in a Triangle Pattern (here on the example of the value of pair BTC/USD on Bitstamp using trading view shown):

In the context, it will be interesting to see if Bitcoin can keep its Pole Position, or concrete, in which direction the price of Bitcoin, the Triangle Pattern is about to leave.

data, unless otherwise specified on the 12. July cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.

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