The correlation between the top 10 coins is record high, but separate from gold




The correlation between the top 10 coins is record high, but separate from gold


"Dark Thursday" has triggered two new trends in Bitcoin's relationship with other cryptocurrencies and Gold.


Historically, cryptocurrencies have often been highly correlated, especially large cryptocurrencies. The correlation between cryptocurrencies and regular gold is weak.


Profit correlation matrix. Source: Kaiko
Profit correlation matrix. Source: Kaiko

Two new trends have emerged


Since the dark Thursday (March 12, 2020), two new trends have emerged: the correlation between Bitcoin and the nine other cryptocurrencies has reached an all-time high, while the correlation between Bitcoin and gold has turned negative. Interestingly, even the correlation between Bitcoin and stablecoin Tether (USDT) has been strengthened.


Source: Coinmetrics
Source: Coinmetrics

Moreover, when we examined the recent 10-day period, we found that Bitcoin's negative correlation with gold has increased in strength and turned negative with NASDAQ and S&P 500.


Profit correlation matrix. Source: Kaiko
Profit correlation matrix. Source: Kaiko

Future


The reason behind the growth in the correlation between Bitcoin and other major cryptocurrencies may be due to general anxiety and instability caused by the pandemic and the subsequent economic crisis. When it comes to the cryptocurrency market, there is more uncertainty in the view of halving the Bitcoin block reward and the impact of this event on BTC price.


It seems we won't see any major changes in the two new trends emerging from Dark Thursday until halving is near - or even after halving, preventing unpredictable big events. OK.


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According to CoinTelegraph
Translated by ToiYeuBitcoin