NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Tether Targets $500 Billion Valuation In New Equity Offering Amid US Expansion Plans
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Tether Targets $500 Billion Valuation In New Equity Offering Amid US Expansion Plans

Report Claims Bitcoin and Altcoin Correlation Slowly Fading, Could This be a Sign of a Maturing Market?

Cole Petersen
Cole Petersen
6 years ago
2 mins read
Coinbase

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The volatile price action in the crypto markets over the past year and a half has proved to investors that despite each major altcoin having (mostly) unique features and use-cases, their prices are still extremely influenced by the overall market price action, and especially that of Bitcoin.

Now, a recent research report conducted and published by cryptocurrency exchange Binance gives a significant amount of insight into how correlated various cryptocurrencies are with Bitcoin, other altcoins, and the US Dollar, and highlights an interesting trend developing in the first few months of 2019 and over the past year.

Altcoin to Bitcoin Correlation Slowly Fading

The report, which was released March 20th by Binance Research, takes a deep dive into the correlations between multiple time periods and multiple cryptocurrencies in terms of returns, and highlights the “elements that may influence the strength and direction of these correlations.”

Analysts and investors alike have long viewed the notoriously high correlation between nearly all cryptocurrencies as a sign of the market’s immaturity, as only seldomly do individual altcoins move on their own accord regardless of the overall market conditions.

The report importantly notes that the correlation of returns between various altcoins and Bitcoin over the past three months has been fading significantly.

“The correlation of cryptoasset returns based on BTC prices (i.e., Bitcoin-adjusted returns), highlights significantly lower correlations among cryptoassets relative to correlations among the same coins in USD returns,” the report explains.

With this in mind, it does, in fact, appear that the 2018 Bitcoin price crash – which sent virtually all cryptocurrencies spiraling downwards – has led to a lower correlation amongst cryptocurrencies – especially in terms of monetary returns – which could mean that future price cycles (including both bull runs and bear crashes) will not cause the entire markets to move as one, with individual altcoins moving on their own accord. If this trend continues to develop, then this would be a sign of a rapidly maturing market.

Furthermore, although the Bitcoin / altcoin correlation has been fading significantly over the past three months, the trend actually started last year following the crypto market crash.

“Correlations of cryptoasset returns in BTC terms in late 2018 were much lower compared to late 2017,” the report explains.

Altcoin to USD Return Correlation Increasing 

Although most cryptos are slowly beginning to move on their own merit, separate from how Bitcoin moves, their returns in terms of USD have been gradually increasing.

“Correlation between cryptoasset returns in USD terms actually increased when comparing the same two periods,” the report explains, adding that this correlation has “coincided with the rise of stablecoins pair dominance during 2018 and is in line with the overall decline in the contribution of BTC pairs to total industry trade volume.”

The entrance of a myriad of new stable coins into the crypto markets has had an obvious effect on the market dynamics, as traders are no longer forced to trade altcoins against Bitcoin.

As more exchanges offer direct USD trading pairs, and more stable coins enter the markets, it is likely that trading altcoins against Bitcoin will become increasingly rare, which will likely perpetuate the current return decorrelation trend, which could ultimately help the markets grow in maturity and reduce the magnitude of market movements.

Featured image from Shutterstock.
Tweet123Share316ShareSend
Cole Petersen
Cole Petersen

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum

Wedge Breakout Or False Alarm? Ethereum Faces Its Biggest Support Test Yet

Ethereum’s price action is at a decisive point after breaking out of a rising wedge pattern. While the move initially...

Godspower Owie 3 hours ago
crypto-com-hack-crypto-accusation-dissimulation

Crypto.com accusé de dissimulation après une brèche de sécurité révélée

Bloomberg affirme qu’une intrusion survenue en 2023 chez Crypto.com a exposé des données d’utilisateurs. En plus, l’échange n’a pas communiqué...

evanss 4 hours ago
microstrategy-version-avalanche-investissement-entreprise-us

Un “MicroStrategy” version Avalanche ? 700 M$ d’AVAX achetés par une entreprise US

Une société américaine va lever 550 M$ pour acheter de l’AVAX et viser plus de 700 M$ de jetons en...

evanss 4 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

avalanche avax avaxusd

AVAX Price Prediction: Bulls Target $50 With Treasury Inflows, and Tokenization Momentum

James Halver 43 minutes ago
Tether

Tether Targets $500 Billion Valuation In New Equity Offering Amid US Expansion Plans

Ronaldo Marquez 1 hour ago
Bitcoin

Here’s The Boundary Bitcoin Bulls Must Defend To Save Rally

Keshav Verma 1 hour ago

Premium Sponsors

Press Releases

  • Az altcoin szezon itt van. Ez a három tényező hajthatja a bikapiacot

    Az altcoin szezon itt van. Ez a három tényező hajthatja...

    2 hours ago
  • Sezon na altcoiny już tu jest. Te trzy czynniki mogą napędzać hossę

    Sezon na altcoiny już tu jest. Te trzy czynniki mogą...

    4 hours ago
  • Sezonul altcoin este aici. Acești trei factori sunt văzuți ca motoare ale raliului

    Sezonul altcoin este aici. Acești trei factori sunt...

    7 hours ago
  • ドージコイン 今後の価格予測:ウォールストリートが注目する「1ドル圏」への道

    ドージコイン...

    9 hours ago
  • Сезонът на алткойните е тук. Три фактора се очаква да задвижат ралито

    Сезонът на алткойните е тук. Три...

    9 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.