Bitcoin’s movements are now mirroring those of U.S. stocks to an unprecedented degree. A 40-day correlation coefficient for the digital token and the tech-heavy Nasdaq 100 has reached almost 0.66 — the most in data compiled by Bloomberg since 2010 — while a similar correlation with the S&P 500 is at a record too.
Read moreHow does the performance of bitcoin compare to the S&P 500 and the price of gold?
Bitcoin (BTC) may be down over 30% from its record high of $69,000, but it has emerged as one of the best-performing financial assets in 2021. BTC has bested the United States benchmark index the S&P 500 and gold . Arcane Research noted in its new report that Bitcoin’s year-to-date performance came out to be nearly 73%.
Read moreWhat coins are correlated with BTC?
Litecoin, Ethereum, and Ripple all showed signs of extremely strong correlation with Bitcoin prices between 2016 and 2018.
Read moreWhat is negatively correlated to Bitcoin?
In the last few weeks, Bitcoin correlation with gold has dropped below 0.5 while the current correlation with silver trends around 0.8%. Now the highest correlation is not with silver but with platinum. 2) Bitcoin is showing negatively correlated with the VIX index and below average correlated with most market indices.
Read moreWhat coin runs opposite to Bitcoin?
What Are Altcoins ? Altcoins are cryptocurrencies other than Bitcoin (BTCUSD). They share characteristics with Bitcoin but are also different in other ways.
Read moreIs Bitcoin correlated to anything?
But two charts depicting relative performance amid recent stock market corrections illustrate that bitcoin is more positively correlated to equities than some might think . The first one shows that when stocks fell nearly 20% in the fourth quarter of 2018, bitcoin fell as much as 50%, while gold traded up nearly 8%.
Read moreAre all altcoins correlated to Bitcoin?
Altcoins run the gamut when it comes to price correlation with BTC — sometimes they skyrocket in value with Bitcoin, sometimes their prices remain largely unaffected. Other times, in times of serious market upheaval, the value of altcoins tank twice as fast as that of Bitcoin’s.
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