RATE Group | Bitcoin is Dragging Other Cryptocurrencies Down as Correlation Between Them Increases
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Bitcoin is Dragging Other Cryptocurrencies Down as Correlation Between Them Increases

08 Sep Bitcoin is Dragging Other Cryptocurrencies Down as Correlation Between Them Increases

Posted at 07:45h in Bitcoin News by

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The increasingly high positive correlation between Bitcoin and other cryptocurrencies is bringing their prices down, now that the tide has turned against Bitcoin since the spectacular rally towards the $20,000 area in mid-December 2017.

With a market capitalization of $111 billion, the BTC continues to recoup the cryptocurrency market dominance it once had.

Correlation Between Bitcoin and Altcoins at 0.7, Up from 0.1 in Early 2018

Correlation amongst assets is the degree to which they move in tandem.

A value close to zero reveals not much dependence between them. This tends to be the case between digital currencies and the stock market. Correlation values range between -1 (returns move in opposite directions) and +1 (returns move in the same direction). However, cryptocurrencies usually present values corresponding to strong positive relationship (0.5 – 1) and moderate positive relationship (0.3 – 0.5).

The 90-day Pearson coefficient show extremely high correlations between Bitcoin…

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