On the 27. April 2019BTC$5.253,00 -0.31%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?
The image is known, furthermore, the coupling of Bitcoin to Ethereum and XRP is very high:
It remains, therefore, You can focus on Bitcoin. We will solve therefore, in the future, the view from the Top 3 and the above Chart only present if a significant change.correlation: crypto-currencies vs. traditional market
The correlations between the Bitcoin price and the S&P 500 index and the Nikkei are somewhat more noticeable than in the previous week. Furthermore, the positive couplings are DAX and Oil. In the case of Oil, this has risen in the course of the last week. In contrast, Gold is correlated with all other comparison assets anti:
Roughly speaking, the Situation corresponds to that of the previous week, with the difference that the correlation to Bitcoin, have pronounced one way or the other in the direction of something:
Overall, the absolute mean correlation Bitcoins with other markets, at 33% and is 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 25 per cent, the second smallest – closely followed by the Nikkei Index, which can currently produce 31 percent of the coupling. The independent Asset continues to be Gold which has a correlation of minus one percent.How long can hold on Bitcoin is still on the classic market?
The rate of explosion of 2. April has been reflected in the volatility. Instantaneously it shot to 3.5 percent. At this Level, you could hold, however, continue to be stable. The latest new Drama to Tether and Bitfinex and the related Dump also the volatility increased a little. You moving currently to four percent:
Despite the Dump moves to the mechanical end of monthly Performance bitcoin on the same level as in the rest of the month of April. 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, but dropped recently. The Performance of Gold continues to be the only negative:
in Spite of yesterday's Sell-Off of 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 is the head-to-head race between the Perfomance of Bitcoin and the Oil exciting. In the meantime, the cumulative Performance increase since the beginning of the year over the Oil. The profits that would have been earned by an Investment at the beginning of 2019 in one of the two Assets, are significantly higher than those of the S&P 500, the DAX and the Nikkei Index. In contrast, continuing 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 look at it more closely.
data on 22. April cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.
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