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Crypto - and traditional markets: Bitcoin to the descent

The Bitcoin price has a positive correlation to the rest of the market. The volatility is higher after they fell to two percent to approximately three percent.

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Crypto - and traditional markets: Bitcoin to the descent

The Bitcoin price has a positive correlation to the rest of the market. The volatility is higher after they fell to two percent to approximately three percent. Of course the fall of the last week had, of course, bitcoin, the Performance is as bad as for a Long time.

Dr. Philipp Giese
30. September 2019BTC$8.256,97 -1.74% part Facebook Twitter LinkedIn xing mail

For almost 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 and 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: Bitcoin step by step together with the markets

Currently, the price of Bitcoin has to all of the comparison markets have a positive correlation. One can distinguish two groups: While the coupling of Bitcoin to the Nikkei Index and the Oil is very weak, the correlations to the S&P 500, the DAX, and Gold significantly higher:

in Particular, the couplings to the S&P 500 and the DAX were able to rise in the past week. The correlation of Bitcoin price of Oil has also increased a little, so that since the 24. September, Bitcoin can provide to all of the comparison markets have a positive correlation:

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Overall, the absolute mean correlation with the other markets is eleven percent. Thus Bitcoin has the second smallest absolute correlation in our market comparison, only Oil behaves with a correlation of six percent, independent of the rest of the markets. The Nikkei Index and Gold are not removed with correlations of respectively 18 and 15 per cent, however, far from Bitcoin. Taking into account compensation effects, a completely different picture: Although the price of Bitcoin has still a correlation of eleven percent to the rest of the markets, the DAX, Oil and Gold behave with 8 percent, 0 percent and -1 percent, which is much more independent.

With the fall of the volatility came back

Of course, the fall of 24. September, raised again, of course the volatility. After it has fallen to two percent, far below that of the Oil Futures was increased to 3 percent. Thus, the volatility is even if you light again forms the conclusion, furthermore, is not dramatic:

Bitcoin price far

cut off After the already mentioned rate of fall, one can imagine, as it is with the Performance of bitcoin in this market comparison. Bitcoin is currently not easy to last, but is significantly below the comparison assets. This can show up on Oil and Gold all have a positive Performance. The Performance of Oil is Zero, while the is of Gold slightly negative:


This of course is also reflected in the long-term comparison. In the comparison of a hypothetical Once-Investments at the beginning of March 2018, someone that would at that time have gone All-in in Bitcoin, over 20 percent of the loss suffered would have. Only with a one-time Investment in Gold or the S&P 500 investors would have made a Profit:

is So unsatisfactory in this Situation to Bitcoin: After all has dissolved the Triangle Pattern once and for all. The sideways phase is over, so Bitcoin should be for institutional investors is interesting. Certainly some investors for good (Again now)entry points to keep a lookout.

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data on the 28. September cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.

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