Crypto - and traditional markets – Bitcoin, despite the Dump to the top

the after the fall in the share price of 17. May bitcoin Performance is significantly higher than that of the comparison assets. The correlation to the other markets is negative and the volatility is below four percent.

Dr. Philipp Giese
19. May 2019BTC$7.905,00 7.95% 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. 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.

How to develop the relationship between Bitcoin and the traditional markets?

are like currencies, The correlations of the Crypto even more. The background is, in contrast to the last week, that Ethereum and Ripple catching up now neatly in the Bull Run, and bitcoin Performance temporarily even in the shadows could provide:

In further consideration and in comparison to the traditional market, we will focus as always on Bitcoin.

correlation: crypto-currencies vs. traditional market

To all of the other Assets Bitcoin is correlated currently anti. Specifically, the three indexes S&P 500, the DAX and the Nikkei Index have a high anti-correlation to the Bitcoin price. Oil and Gold are correlated in contrast to this, hardly to Bitcoin:

The coupling between Bitcoin and almost all of the comparison assets fell in the last week. The correlation to the S&P 500 fell, with the DAX and Oil into the Negative. The only exception to this is the correlation to Gold:

Overall, it is still the absolute mean correlation Bitcoins with other markets at 18 percent. In order to correlate extremely strongly anti. Taking into account the compensation effects due to any of the anti-correlations, one obtains just the Negative. This is understandable, but is correlated with Bitcoin up-to-date comparison of asset anti. The lowest correlation to the other markets continue to be Gold, closely followed by the Nikkei.

Dump to change to Bitcoins dominant Performance is nothing

for Sure: With bitcoin latest storm up to 8,000 US-Dollar and the recent Drop in volatility was also high. It has risen again to just under four percent:

The price rally of the last week gave Bitcoin its lead over the traditional Assets continue to expand. Up to 1.5 percent of the daily Performance of Bitcoin could increase. Because of the recent Drop changes also – so far – nothing. The classic Assets of the reference line, where the Nikkei Index is now in negative range:

According to Bitcoin, also taking into account the Sell-Offs, by far the best performing Asset:

looking at the cumulative Performance since the beginning of the year, is Bitcoin of the comparison assets. With nearly 90 percent of profit since the new year, Bitcoin is clearly about Oil, the second best performing Asset ends. The stock market indices S&P 500 and DAX are far behind in third place. Since the beginning of may, poor Performance of the Nikkei Index had such share index, the connection to his colleagues from Germany and America lose. The cumulative Performance of Gold, finally, is still last, and is approximately zero.

The Dump may be frustrating, it remains, however, that doesn't change the fact that Bitcoin continues to be an attractive Investment for institutional investors. Currently, it represents the correlation here is considered a good Hedge for the rest of the market. The volatility, although the increase is still within manageable limits. Finally, the Performance of Bitcoins has been going on for over a month, significantly better than that of the comparison assets. This Performance is even a more skeptical Investor how Tyler Jenks of Lucid investment, a purchase of Bitcoin recommend:

Recent price action in Bitcoin has turned Consensio 100% Bullish. Hyper wave suggests the bottom is not in. I recommend a 20% initial position in Bitcoin. This is 20% of X, where X is the amount of liquid assets you are comfortable putting into Bitcoin. First buy in 17 months.

— Tyler Jenks (@LucidInvestment) May 11, 2019

data on 10. In may of cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.

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