Bitcoin and traditional markets – Is Gold about Bitcoin?

Although Bitcoin is decoupled continues to be strong from the market, however, increased the volatility. The latest Dump also led to a Bitcoins has dropped since August, the cumulative Performance of Gold.

Dr. Philipp Giese
9. June 2019BTC$7.652,00 -3.12%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.

in Order 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, 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 two really notable exceptions talk of the Binance-Coin-price and the price of Bitcoin SV are still. Otherwise, the correlations are at least 50 percent:

we at the comparison between Bitcoin and the traditional markets: for the three indices, the S&P 500, DAX and Nikkei the price of Bitcoin a visible negative coupling to Gold is a slightly positive and seems to be the Oil Bitcoin currently almost decoupled: notice

Man: Again, the Situation is almost the last week of the same. The Nikkei Index, the correlation increased slightly, while it fell to all of the comparison assets, however, the Situation is more or less the last week identical:

Overall, the absolute mean correlation Bitcoins with other markets at 19% and is just as decoupled as Gold. Taking into account the compensation effects due to any of the anti-correlations, a negative correlation of four to ten percent. Both Gold and the Nikkei Index are decoupled from the other markets: Gold has a positive correlation of two per cent, while the Nikkei Index has one of three percent. Also, the coupling of Oil to the other markets, it can take almost that of Bitcoin and is only 16 percent.

The volatility is slightly increased and is currently at 5 percent. In the last week named upward trend has continued: Almost all of the compared assets have increasing volatilities. In the case of Oil, this is nearly two per cent, in the case of the DAX, we are talking of almost a percent:

Performance of Bitcoin to be slightly below the Gold

in Spite of the since the end of may, a rather disappointing Performance, the Bitcoins, the monthly Performance of the Bitcoin is course still sovereign over the rest of the Assets. In addition to Gold, this is for all reference assets in the negative range. This is especially bad in the case of Oil, whose average daily Performance is now below 0.5 percent. The Performance of Gold could rise, in contrast, easily:

According to Bitcoin since the beginning of 2019, the by far the best-performing Asset. Despite the recent, rather disappointing price developments, the average Monthly Performance followed Bitcoins since the beginning of February on an upward trend. Can't claim the Bulk of the comparison assets themselves: Almost all have fallen since mid-April, strong. Gold, the DAX and the S&P 500, however, could make up for that in the last days, the lost territory:

In the last week we have considered whether the Performance could make up for Bitcoins, the dramatic development after the Crash of the mid-August 2018. As in the title "threatened" there are some negative news. The cumulative Performance since August of 2018. from the Bitcoin price has again fallen below that of Gold:

Really dramatically the is not, of course. Furthermore, the Performance Bitcoins is significantly higher than in the rest of the Assets. The volatility increased a little, but with 5 percent in the manageable range. Finally, the correlation is, the rest of the market continues to be low, so that Bitcoin continues to be the reputation from the "digital Gold" to meet.

data on 07. June cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.

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