Crypto Market Back To High Correlation As All Indexes Closely Follow Bitcoin

1

Data shows the crypto market has become highly correlation again in the past week as all indexes have been closing following Bitcoin.

All Market Cap Weighted Crypto Indexes Have Been Moving Together Recently

According to the latest weekly report from Arcane Research, the 30-day ETH-BTC correlation now has a value of 0.95.

To assess the performance of the different portions of the market as a whole, the coins are divided into the “crypto indexes.” The criteria for putting any asset into an index is using its market cap.

The “market cap” here simply refers to a measure of the total worth of a cryptocurrency’s entire circulating supply.

There are three main categories of indexes: the “large caps,” the “mid caps,” and the “small caps.” As their names already imply, these indexes give a look at how the different sized coins are doing right now.

Here is a chart that shows how each of these altcoin indexes have performed against Bitcoin during the last month:

Bitcoin Vs Altcoins

Looks like the small caps have performed the worst in recent days | Source: Arcane Research’s Ahead of the Curve – November 22

As you can see in the above graph, the market cap weighted indexes didn’t diverge too much during the past month, but in the last week especially they have been following each other very closely.

Both Bitcoin and the mid caps currently stand at exactly 18% in the red during the period of the last thirty days, while the large caps have also only minimally performed worse as the index’s returns are at 19% currently.

The small caps have taken a noticeably higher hit than the rest of the pack, as this index is 23% underwater in this timespan.

As is apparent from the data, assets across the crypto market have become pretty correlated in recent days.

The report additionally notes that the 30-day rolling correlation between Bitcoin and Ethereum has now hit a value of 0.95. The correlation metric can have a maximum value of 1, which means these two cryptos are now almost fully moving in tandem.

Since the year 2016, the BTC-ETH correlation has only been seen at such high levels for 3% of the total time.

Bitcoin Price

At the time of writing, Bitcoin’s price floats around $16.4k, down 1% in the last week. Below is a chart that shows the recent trend in the value of the crypto.

Bitcoin Price Chart

The price of the coin seems to have made some recovery from the plunge below $16k during the last couple of days | Source: BTCUSD on TradingView
Featured image from Art Rachen on Unsplash.com, charts from TradingView.com, Arcane Research

Comments are closed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

bitcoin
Bitcoin (BTC) $ 27,228.30
ethereum
Ethereum (ETH) $ 1,906.75
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 307.47
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.525240
staked-ether
Lido Staked Ether (STETH) $ 1,904.85
cardano
Cardano (ADA) $ 0.381759
dogecoin
Dogecoin (DOGE) $ 0.073087
solana
Solana (SOL) $ 21.62
matic-network
Polygon (MATIC) $ 0.905810
tron
TRON (TRX) $ 0.082279
litecoin
Litecoin (LTC) $ 96.38
polkadot
Polkadot (DOT) $ 5.37
binance-usd
Binance USD (BUSD) $ 0.999836
shiba-inu
Shiba Inu (SHIB) $ 0.000009
avalanche-2
Avalanche (AVAX) $ 14.75
dai
Dai (DAI) $ 0.999750
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 27,294.31
uniswap
Uniswap (UNI) $ 5.13
chainlink
Chainlink (LINK) $ 6.49
leo-token
LEO Token (LEO) $ 3.61
cosmos
Cosmos Hub (ATOM) $ 10.80
okb
OKB (OKB) $ 45.95
monero
Monero (XMR) $ 149.79
ethereum-classic
Ethereum Classic (ETC) $ 18.21
the-open-network
Toncoin (TON) $ 1.74
stellar
Stellar (XLM) $ 0.092308
bitcoin-cash
Bitcoin Cash (BCH) $ 116.77
internet-computer
Internet Computer (ICP) $ 4.85
filecoin
Filecoin (FIL) $ 4.87
lido-dao
Lido DAO (LDO) $ 2.35
true-usd
TrueUSD (TUSD) $ 0.999559
aptos
Aptos (APT) $ 9.05
quant-network
Quant (QNT) $ 117.70
hedera-hashgraph
Hedera (HBAR) $ 0.050986
crypto-com-chain
Cronos (CRO) $ 0.060528
arbitrum
Arbitrum (ARB) $ 1.23
near
NEAR Protocol (NEAR) $ 1.64
vechain
VeChain (VET) $ 0.020024
the-graph
The Graph (GRT) $ 0.129517
apecoin
ApeCoin (APE) $ 3.16
algorand
Algorand (ALGO) $ 0.152961
the-sandbox
The Sandbox (SAND) $ 0.577672
eos
EOS (EOS) $ 0.921956
paxos-standard
Pax Dollar (USDP) $ 0.999551
frax
Frax (FRAX) $ 0.999498
render-token
Render (RNDR) $ 2.73
elrond-erd-2
MultiversX (EGLD) $ 38.65
optimism
Optimism (OP) $ 1.51
rocket-pool
Rocket Pool (RPL) $ 49.57
aave
Aave (AAVE) $ 64.42
decentraland
Decentraland (MANA) $ 0.494913
fantom
Fantom (FTM) $ 0.321657
tezos
Tezos (XTZ) $ 0.929190
blockstack
Stacks (STX) $ 0.619173
theta-token
Theta Network (THETA) $ 0.850899
rocket-pool-eth
Rocket Pool ETH (RETH) $ 2,047.08
axie-infinity
Axie Infinity (AXS) $ 7.24
immutable-x
ImmutableX (IMX) $ 0.825056
flow
Flow (FLOW) $ 0.732251
havven
Synthetix Network (SNX) $ 2.38
usdd
USDD (USDD) $ 0.998778
neo
NEO (NEO) $ 10.51
kucoin-shares
KuCoin (KCS) $ 7.44
bitdao
BitDAO (BIT) $ 0.496860
gala
GALA (GALA) $ 0.030040
curve-dao-token
Curve DAO (CRV) $ 0.862926
whitebit
WhiteBIT Token (WBT) $ 4.90
radix
Radix (XRD) $ 0.067788
bitget-token
Bitget Token (BGB) $ 0.470406
bitcoin-sv
Bitcoin SV (BSV) $ 33.03
maker
Maker (MKR) $ 700.99
injective-protocol
Injective (INJ) $ 7.85
gatechain-token
Gate (GT) $ 4.41
klay-token
Klaytn (KLAY) $ 0.186344
conflux-token
Conflux (CFX) $ 0.275001
gemini-dollar
Gemini Dollar (GUSD) $ 0.998914
iota
IOTA (MIOTA) $ 0.204636
bittorrent
BitTorrent (BTT) $ 0.000001
kava
Kava (KAVA) $ 1.02
chiliz
Chiliz (CHZ) $ 0.103249
pepe
Pepe (PEPE) $ 0.000001
terra-luna
Terra Luna Classic (LUNC) $ 0.000090
casper-network
Casper Network (CSPR) $ 0.047065
tokenize-xchange
Tokenize Xchange (TKX) $ 6.45
pax-gold
PAX Gold (PAXG) $ 1,946.79
sui
Sui (SUI) $ 0.969969
mina-protocol
Mina Protocol (MINA) $ 0.554590
compound-ether
cETH (CETH) $ 38.18
dash
Dash (DASH) $ 43.47
xdce-crowd-sale
XDC Network (XDC) $ 0.035389
ecash
eCash (XEC) $ 0.000025
gmx
GMX (GMX) $ 55.72
tether-gold
Tether Gold (XAUT) $ 1,948.24
huobi-token
Huobi (HT) $ 2.97
frax-share
Frax Share (FXS) $ 6.63
trust-wallet-token
Trust Wallet (TWT) $ 1.08
frax-ether
Frax Ether (FRXETH) $ 1,904.86
woo-network
WOO Network (WOO) $ 0.246129