According to a study conducted by cryptocurrency market researchers at Hodlbot.io, individual digital currencies are less correlated with the wider market so far in 2019 than they were in 2018. This, according to the study’s authors, is good news for those investing in a wide selection of crypto assets.<\/p>\n
If it continues, the trend observed should be music to the ears of the likes of Vinny Lingham<\/a> too, who has called for a decoupling of Bitcoin<\/a> from the rest of the market before any serious bull run can start up again.<\/p>\n One of the interesting phenomenons of recent years in the crypto space is the correlation between digital assets. When one coin moves up, the rest almost universally follow. Obviously, there are some exceptions to this. Low market capitalisation coins can be subject to pump and dump schemes and news events, such as partnership announcements or security breaches, can make a specific crypto rise or fall out of tandem with the wider market.<\/p>\n In an effort to assess whether the correlation between digital assets and the wider crypto market is increasing or decreasing, researchers from Binance-focused trading bot software developers Hodlbot.io<\/a> have devised a study<\/a> based on the Peason correlation coefficient of the the market capitalisation of a given project and that of the wider market over time.<\/p>\n In 2019, correlations between individual coins and the market dropped when compared to the previous year. <\/p>\n A one-tailed Welch's t-test, confirms that in 2019 #cryptocurrencies<\/a> have a lower mean correlation.<\/p>\n You can find the full @hodl_bot<\/a> blog here:https:\/\/t.co\/qVvWlkKQYj<\/a> pic.twitter.com\/uyeEqGO8oi<\/a><\/p>\n — anthony xie (@XieToni) April 6, 2019<\/a><\/p><\/blockquote>\nCorrelation Between Crypto Assets and Wider Market Falling<\/h2>\n
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