Bitcoin and traditional markets: In step with Gold

bitcoin Performance is currently above the of Gold. The volatility has again fallen below 4 percent. These positive developments are accompanied by a low correlation to the other markets.

Dr. Philipp Giese
18. August 2019BTC$10.117,00 -2.88%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

Because within the Top 10 everything of Bitcoin-oriented and institutional investors look at current currencies in the first line on the biggest of all Crypto, we will look at the Top 10 crypto-currencies skip. Currencies something interesting – institutional interest or special features of the correlations within the Crypto – happen, we respond.

unlike in the past week, the correlations between the Bitcoin price and the comparison assets were to grow again. While the Nikkei Index, Oil and the DAX have to Bitcoin is a negative correlation, the coupling to the S&P 500 and Gold positive again:

The correlation to Gold is achieved not in a long time-seen heights of up to 20 per cent, the S&P 500 index and the DAX have a slight increase. The rest of the Assets have changed, however, hardly:

Overall, the absolute mean correlation with the other markets at 17 percent. Thus, the price of Bitcoin has again the lowest coupling to the comparison of assets in this market comparison. Taking into account compensation effects, the image of the past few weeks has been confirmed: a negative correlation of 6% of the Bitcoin's exchange rate is significantly anti-correlated as the Nikkei Index (-4 percent). All other Assets have to the market is a positive correlation.

Performance of Bitcoin and Gold to deliver head-to-head race

The volatility has continued to fall and could now fall back below four percent:

Thus, the volatility of the upward channel is dropped, the volatility followed since the end of March and again on the Level she has reached the last Time at the end of June:

The Performance of Bitcoins to a head of delivers since the beginning of August-to-head race with the Performance of Gold. Currently, the Bitcoin price stands above the of Gold. Both of the only two positive monthly Performances:

currently, as far as it looks positive. The deceiving of the Assets since March not in on this deal, however, the fact that in our comparison of 2018 Bitcoin is currently in the lower middle of the pack. After that, Bitcoin, S&P 500 and the DAX would have been the beginning of 2018 better Investments:

in Spite of this long-term picture, you can look again a little more confident in the future: Bitcoins correlation with the comparison of markets is very low and also the Performance can increase. Finally, the volatility decreases, so Bitcoin to its reputation as a "digital Gold" will actually meet.

data, unless otherwise specified, at 16. August cryptocompare.com, finance.yahoo.com and fred.stlouisfed.org used.

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