• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
No Result
View All Result
Breaking News: Dogecoin Surges 6% After Elon Musk Unveils Crypto Payment Master Plan
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Dogecoin Surges 6% After Elon Musk Unveils Crypto Payment Master Plan
ASIC

Bitcoin is Dragging Other Cryptocurrencies Down as Correlation Between Them Increases

Ricardo Esteves by Ricardo Esteves
4 years ago
in Bitcoin, Cryptocurrency Technology
Reading Time: 2 mins read
Advertisement

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.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

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 and Bitcoin Cash (0.88), Litecoin (0.86), Ethereum (0.83), NEM (0.83), Zcash (0.82), Monero (0.82), Ripple (0.78), Stellar Lumens (0.78), Siacoin (0.77), Nxt (0.76), Dash (0.69), Lisk (0.68), Ethereum Classic (0.6), and Augur (0.55), according to the cryptocurrency correlation matrix by Sifr Data.

The ties between Bitcoin and these altcoins have led to significant damage in their market valuation in 2018. As the BTC moved throughout the year from its $20,000 peak to approximately $6,500, where it currently stands, Bitcoin Cash plunged from $3,400 to the $500 line.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Litecoin fell from $366 to $56. Ethereum dropped from $1,377 to $218. NEM crashed to $0.10 down from $1.90. Zcash declined from $888 to $127. Monero fell from $494 to $112. Ripple dived from $339 to as low as $0.29 as the cryptocurrencies continually print new lows in 2018.

The strong positive relationship between Bitcoin and altcoins prices wasn’t always a given. Correlation between Bitcoin and MVIS CryptoCompare indexes of the 10 biggest and the 100 smaller coins has jumped to 0.7 from lower than 0.1 at the start of the year. The highest correlation this year was found in April, where it went as high as 0.9 in April, virtually mimicking each other in a bearish momentum.

The 90-day Pearson rolling correlation also shows an interesting behavior as Bitcoin Cash moves higher from the third place (0.79) to become the digital currency with the strongest positive correlation against Bitcoin (0.88).

Ethereum, which was in the lead 90 days ago with a coefficient of 0.90, dropped gradually to the second place (0.83). Ripple also made a downward trajectory during the last three months, easing from 0.84 to 0.78.

The number of digital assets available for trading in the cryptocurrency market has increased continually, completely disregarding this year’s downward slope in volumes traded – $31 billion on January 01, 2018 to $13 billion today – and market capitalization – $613 billion on January 01, 2018 to $203 billion today.

There are now 1,926 cryptocurrencies being traded in 13,727 exchanges around the world, according to CoinMarketCap, but BTC dominance keeps rising.

Featured image from Shutterstock.

Tags: altcoinsBearish BitcoinbitcoinBitcoin Cashbitcoin pricebtc dominanceCorrelationcryptocurrenciescryptocurrency correlationethereumLitecoinmarket correlationmoneroNEMRippleZCash
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Ricardo Esteves

Ricardo Esteves

Related Posts

Bitcoin Network

Craig Wright Wants His $2.5 Billion, Demanding For a Bitcoin Hard Fork

10 hours ago
Bitcoin

Don’t Get Too Greedy On Bitcoin, Analyst Suggests, Here’s Why

1 day ago
bitcoin price bear

Will Bitcoin Price Return To $20,000? Here’s What Investors Expect

1 day ago
Bitcoin

Bitcoin Short-Term Holder Profit Taking Reaches Levels Not Seen Since Nov. 2021

3 days ago
Bitcoin crypto liquidations

Crypto Market Still Reeling As Bitcoin’s Break Above $24,000 Triggers Liquidations

3 days ago
Nigerians buying bitcoin

Are Nigerians Really Buying Bitcoin For As High As $34,000?

3 days ago

Premium Partners

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Metaspins

Metaspins

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
Coinplay

Coinplay

Review · Visit
mBit

mBit

Review · Visit
Vave

Vave

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
Coinplay

Coinplay

Review · Visit

Monero (XMR) and Dogecoin (DOGE) are Popular Twitter Crypto Recommendations. Here’s Why Savvy Investors Choose Snowfall Protocol (SNW) Instead

February 5, 2023

Price Predictions for Polygon (MATIC), Uniswap (UNI), and Snowfall Protocol (SNW) for 2023 – 2030

February 5, 2023

Fantom And Decentraland Explode As Big Eyes Coin Raises $21M In Presale

February 4, 2023

The Metaverse Represents The Future of Web3: Decentraland (MANA), The Sandbox (SAND), and Snowfall Protocol (SNW) Lead the Way

February 4, 2023

Snowfall Protocol (SNW), Shiba Inu (SHIB), and Cronos (CRO) – The Best Cheap Cryptos to Buy Now

February 4, 2023

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.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins

© 2022 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.