What crypto is most correlated to bitcoin

Correlations of daily returns between cryptoassets and Bitcoin have been increasing since January Bitcoin and Altcoins price correlation. The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. For instance, fake news in the WeChat community suggesting that the identity of Satoshi was confirmed caused Bitcoin S. Most Popular.

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It has become almost a law of cryptocurrency markets that where bitcoin goes, altcoins follow. While there have been exceptions to this trend, in general the correlation between bitcoin price and altcoin prices has held pretty strong throughout crypto history. As any asset manager will tell you, negative correlations are exciting for investors. In short, this is because negative correlations mean that investors can hedge their investments — if stock ti crypto A goes down, B goes up — and so reduce the risk of their portfolios. Managers can also reduce the volatility of their portfolios by offsetting wild swings in some assets with other assets swinging wuat the opposite direction. In cprrelated post, we take a look at the top 5 altcoins with negative correlations to bitcoin, a little about these cryptoassets, and what might be driving the trend.

Bitcoin and Altcoins price correlation

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Top 5 Cryptocurrencies With Negative Correlations to Bitcoin

The correlation values represent the spearman correlations of daily returns over 90 days. As with any potential cryptoasset market indicator, correlations are only a supplement what crypto is most correlated to bitcoin technical and fundamental analysis. To be sure, despite the plunge, bitcoin prices are still up about 7. While bitcoin was originally designed to offer users privacy in their transactions, its pseudonymous mosr has made its users vulnerable to identification. Notify me of new posts by email. An index where every single coin is correlated to another is not much a diversified portfolio. The market is so close knit, that when one currency starts to either go up or down, you can expect other currencies to follow suit. Just because something was correlated a certain way cypto the past, does not mean the relationship will hold in the future. Advanced Search Submit entry for keyword results. In some cases, the answer is relatively simple. Hence, the bullish performance in Bitcoin might set the pace that other coins will emulate to kick off the altcoin season. In this case it is used to show the influence of Bitcoin price on altcoins.