23. April 2019BTC$5.567,00 , 4.51%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, Dax and Nikkei, Oil and Gold.How to develop the relationship between Bitcoin and the traditional markets?
Over the week have changed the correlations of the crypto-currencies among each other:
It remains, therefore, You can focus on Bitcoin.correlation: crypto-currencies vs. traditional market
The correlation between the Bitcoin price and the S&P 500 index and the Nikkei is virtually non-existent, while the DAX and particularly to Oil positive couplings. Furthermore, Bitcoin and Gold are, however, correlated:
The Situation is so the last week similar. The only thing that is striking is that the correlation to Oil, even as more formed:
Overall, the absolute mean correlation Bitcoins with other markets at 29 percent and is, therefore, of Gold besides, significantly lower than that of the comparison assets. Taking into account the compensation effects due to any of the anti-correlations, a different picture emerges. Although Bitcoins coupling is to the other markets with 23 per cent, the second smallest – closely followed by the Nikkei Index, which can currently produce 25 percent of power generation. The independent Asset continues to be Gold which has a correlation of only six percent.How long can hold on Bitcoin is still on the classic market?
The rate of explosion of 2. April reflected, of course, on the volatility. Instantaneously it shot to 3.5 percent. At this Level, you could hold, however, remains stable:
The Situation is very similar to last week: Bitcoin could not expand the distance to the remaining Assets, however, the mean daily Performance continues to be significantly above those of the comparison assets. While the S&P 500, DAX, Nikkei and Gold have more-or-less a Performance from Zero, could the Oil have in the meantime significantly better. While the Performance of Gold has slipped slightly into the Negative, was able to hold Oil after all, significantly above the zero line:
Despite the slight Sell-Off in the last few days Bitcoin is also since the beginning of the year the best performing Asset:
And on it goes with the race between Bitcoin and Oil
looking at the cumulative Performance since the beginning of the year to continue Bitcoin and Oil is a head-to-head race. The profits that you would have received through an Investment in one of the two Assets, are significantly higher than those of the S&P 500, the DAX and the Nikkei Index. Gold, in contrast, continues its dance around the zero line:
Bitcoin remains an interesting Asset for institutional investors: Its independence from the rest of the market, a high, but still manageable volatility and a very good Performance and are, undoubtedly, reasons for institutional investors, Bitcoin closer look. A little concerned you can rate the since the beginning of April, existing in a sideways phase, finally, such was significantly longer the harbinger of a dramatic price fall. On the other hand, the market has moved since the beginning of the year until the beginning of April rather sideways. You should so importance of the rather quiet April not too great at dinner.
data on 22. April cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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