10. March 2019BTC$3.912,39 -0.76%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, BTC has dedicated to 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 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?
The image is well-known: As in the past few weeks, XRP is still the entkoppeltste Asset of the Top 3. Since mid-February, the correlation between XRP and the two other considered crypto currencies but increased. Since the beginning of March, both correlations move around 85 percent:
As Bitcoin is the leading currency within the crypto Ecosystem and institutional investors as the first on this view, it is sufficient, if we focus on currencies when compared to the traditional market on the biggest of all Crypto.correlation: crypto-currencies vs. traditional market
Similarly mixed as in the last few weeks, the correlations between Bitcoin and the traditional markets. Gold and the S&P 500 have a positive correlation with the crypto-currency, with respect to the DAX, Oil and the Nikkei Index is negative. The result, however, is that the coupling between the classical and the crypto-market is minimal. The Nikkei Index has a similar low correlation to the rest of the market, which is due to the fact that the correlations from the Nikkei Index, Gold and the DAX, compensate each other almost:
The correlations of Bitcoin to other Assets remained positive for Gold and the S&P 500, negative for the Oil, The Nikkei and the DAX where the correlations between the Bitcoin exchange rate and the Nikkei Index to rise, while it falls for the coupling to the Oil:
Overall, the absolute mean correlation Bitcoins with other markets with 26 percent of the lowest. We take into account compensation effects by any of the anti-correlations, Bitcoin is correlated only to 13 percent for the rest of the market, and thus also the entkoppelste of all Assets.Performance of Bitcoin, in spite of a lower volatility than other Assets
The current sideways position increased due to the medium volatility of the past 30 days continues to move at just under three percent:
Even the rates fall from 4.March didn't change the fact that the Performance of Bitcoins continued to beat the rest of the market. She even took to during the monthly Performance of the compared assets have fallen more:
proposing As the heart of the Bitcoin enthusiasts, and of institutional investors is higher. Furthermore, Bitcoin presents itself as an interesting Investment opportunity. The correlation to the traditional markets, a still manageable volatility and the best Performance, ensure continuing interest on the part of institutional investors. The most recent sign of life from Bakkt will contribute its part to this interest certainly.
data on the Basis of cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org
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