Crypto - and traditional markets – Oil overtakes Bitcoin

the Currently is not Bitcoin, but Oil is the best-performing Asset. The absolute coupling of Bitcoin with the rest of the market is still at its lowest. Currently, Bitcoin has a stable volatility of under three percent.

Dr. Philipp Giese
17. March 2019BTC$3.983,21 -0.24%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, but increased the coupling between the XRP and Bitcoin, or Ethereum in February. 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

Until the Oil is correlated with Bitcoin to all of the comparison assets is positive. The correlations, however, are rather low, where the coupling to the Oil compensates for the DAX:

since The 24. February falling correlation with Oil since the 5. In March, the price of Bitcoin and Oil have a negative pairing. While up to 9. In March, the coupling between Bitcoin and the DAX and the Nikkei Index was positive, increased, these two correlations abruptly:

Overall, the absolute mean correlation Bitcoins with other markets with 25 percent at its lowest. We take into account compensation effects by any of the anti-correlations, leading the Nikkei to only 13 percent. Bitcoin correlation to the comparison assets is, however, only 22 percent and is the second largest in the coupling on the market.

Performance of Bitcoin under the Oil

The current sideways position like owed has changed, the average volatility for the last 30 days. You is on 10. February fallen slightly and is currently about 2.5 per cent:

On 10. March crashed the monthly Performance of the Bitcoin price. Since the beginning of March, the Performance of Oil Futures to rise steadily, must Bitcoin currently hold the second place in terms of Performance:

Overall, the result is not as grandiose as in the last week. Bitcoin power compared to the classic market but still a good figure. Especially in comparison to the analog model of the Gold Bitcoin, is reflected with respect to Performance extremely well. Furthermore, the correlation is the comparison of assets, although is currently worse than that of the Nikkei Index, but here, too, the second place. Finally, the volatility is still significantly higher than that of the comparison assets, but stable under three percent.

data on 15. March of cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.

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