Bitcoin and traditional markets – Bitcoin goes his own way

The correlation of the Bitcoin rate to the other markets reached a new Minimum. The volatility remains at approximately 3.5 per cent. Unfortunately, Bitcoin is in relation to the Performance of the final light.

Dr. Philipp Giese
8. September 2019BTC$10.414,11 -0.02%part Facebook Twitter LinkedIn xing mail

For over half 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 stands against the classical markets

Particularly strong, it is noticeable that the Bitcoin price developed very independently of the three indices S&P 500, DAX and Nikkei. To Oil a comparably strong negative correlation, while the coupling to Gold is still positive. Regardless of Bitcoin is the strong anti-correlation between Gold and the Nikkei Index falls to continue:

Since mid-August, the correlation between Gold and Bitcoin is like. In contrast, the coupling between the Nikkei Index and the Bitcoin price stands. The pairing was in the middle of August is still strongly negative, it has fallen now to Zero:

Overall, the absolute mean correlation with the other markets, at 7 per cent. Thus, the price of Bitcoin has, by a wide margin the least coupling to the comparison assets at the classical market. The Nikkei-Index, the square two with respect to the absolute average correlation, this is already 14 per cent. Taking into account compensation effects, we get a similar picture, With a negative correlation to the other markets, only one percent of the Bitcoin exchange rate is also under consideration of compensation effects, the most independent of all the Assets.

volatility of Bitcoins in a Plateau

Furthermore, the volatility – Bitcoin-conditions – minimal. It is now, since mid-August when stable 3 to 3.5 percent:

So the volatility is still significantly higher than that of the comparison assets. Of which, the Oil Futures have approximately two percent, the highest volatility, while the Rest of the volatilities of a percent.

Concerning the Bitcoin exchange rate, the volatility is now so low since may not:

Bitcoin to the last place

pushed to The low volatility and strong anti-correlation to the traditional markets, accompanied, as in the last week of a rather unsightly development. The Performance fell further and now forms the tail light as the only Asset with a negative Performance:

a long-term perspective, the situation is better: In a comparison of a hypothetical Once-Investments at the beginning of March 2018, would have currently truncated to only the S&P 500 and Gold is better than Bitcoin. Compared to the previous week, Bitcoin was able to position itself again on the DAX, and Oil, and over-the-Nikkei-Index. However, the fact remains that Bitcoin, as well as the three indices, DAX, Oil and Nikkei would end with a one-time Investment of 2018, currently in the Minus:

The view is not as dramatic as in the previous week. Sure, currently the Performance is rather poor, however, are manageable volatility and, above all, the independence of the comparison markets plus points for Bitcoin. Let's see how such a development affects in connection with the Bakkt Futures.

data, unless otherwise specified, at 6. September cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.

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