Crypto - and traditional markets KW2 – Bitcoin beats traditional markets

the Currently is correlated to Bitcoin to all other considered Assets. The downward trend of the volatility was followed by the recent sell-off but temporarily interrupted. In spite of this rates fall, the monthly Performance is still better than that of the comparison assets.

Dr. Philipp Giese
14. January 2019TeilenFacebookTwitterLinkedInxingemail

What good is Bitcoin and the strongly correlated crypto market as a random Asset? Decoupled from the traditional markets from the crypto-market? And how strong the volatility is bitcoin?

The sizes of the correlation and volatility are just for institutional investors: A low correlation with traditional markets such as the S&P500, the DAX or the Dow Jones would confirm that the crypto-market for institutional investors could be interesting. It would be for a greater diversification of the portfolio is helpful. Another Monitor, the volatility is high volatility and the associated risk scare off institutional investors.

Since the beginning of November, we keep track of how Bitcoin fails in comparison to traditional markets. We, therefore, pay attention to the correlation in the last month, on a sliding correlation of a continuous volatility and a sliding rate of return. The last three values are calculated for each day based on the last 30 days. Since the correlations within the crypto market behavior very similar to BTC for institutional investors, is currently the most interesting, we focus mostly on the Bitcoin price.

With a proper Rebound could be avoided in the last year, further price losses in the case of Bitcoin, XRP, and Ethereum. January began pleasantly, but found the price increases on the 10. January came to an abrupt end. As you know from the crypto-market, fell more or less all the crypto-currencies together, so that the correlations of the Top 3 changed to each other:

Read also: Bitcoin, Ethereum, and XRP – course analysis of KW50, But no bears for Christmas?

correlation: crypto-currencies vs. traditional market

Bitcoins correlation to the classical values has changed since last week. The coupling to Oil is strongly negative. Similarly, via the coupling to the American indices S&P 500 and Dow Jones say that. Overall, the correlation is to all of the Assets currently negative:

these negative pairings, the mean correlation among all of the observed markets for Bitcoin has by far the smallest.

The pairings to Gold and the DAX are at their weakest, while the correlations to the S&P 500 index and Dow Jones as well as the correlation with Oil are strongly negative:

sale allows for volatility to rise

The volatility of Bitcoin is still significantly higher than that of the other Assets, but in the meantime, almost 4 percent. Of course, the sell-off of 10. In January, the volatility will increase,

The: is the crypto-Investor: The monthly Performance is significantly above the comparison assets. Although this has fallen since a few days again, but still at least three times as high as that of the traditional markets:

Currently represents Bitcoin a Asset, which is for institutional investors is extremely attractive: high yield, lower volatility and a high anti-correlation to traditional markets. It is no wonder that recently, Bill Miller, CIO of hedge Fund Miller Venture Partners commented very positively to Bitcoin.

also Read: Podcast: Bitcoin vs. Blockchains without Coin

data on the Basis of cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org