The Future Coin

Bitcoin

$10,889.65

BTC 1.50%

Ethereum

$367.82

ETH 3.57%

XRP

$0.24

XRP 1.75%

Litecoin

$48.09

LTC 4.70%

EOS

$2.62

EOS 1.71%

  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases
No Result
View All Result
The Future Coin
No Result
View All Result
Home Altcoin News

Bitcoin might share an ‘asynchronous’ relation with majors alts’ price action

by The Future Coin
May 23, 2020
in Altcoin News
0
Bitcoin might share an ‘asynchronous’ relation with majors alts’ price action
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

For the longest time and for the probable future, Bitcoin is likely to be the most dominant cryptocurrency out there. Historical data regarding price action highlights how altcoins are often quick to mimic and react to price movements of Bitcoin. But, are there exceptions to the norm? And if the answer is in the affirmative, what contributes to altcoins having price movements independent of those noted by Bitcoin.

A recent research paper titled “Proxy-Hedging of Bitcoin Exposures With Altcoins,” published by researchers from the University of Paris, sought to shed light on Bitcoin’s hedging capabilities and its unique relationship with other cryptocurrencies in the market. The study noted,

“Despite Bitcoin being considered the benchmark digital currency while all other cryptocurrencies are highly correlated to it, [it also] shows that every major coin exhibits its own behavior due to idiosyncratic events.”

While the study did not pinpoint what constitutes these idiosyncrasies, it did suggest that each coin’s ecosystem reacted differently to major events like market crashes, such as the now-infamous Black Thursday crash in which Bitcoin lost half of its value in under an hour.

Source: Skew

Interestingly, even when compared to traditional assets like the S&P 500, over the past 30 days, Bitcoin’s correlation has grown rather significantly and systematically. This, in turn, raises questions pertaining to the king coin’s ability to shield itself from external market shocks.

With regard to its hedging abilities, the study noted that altcoins can help Bitcoin investors hedge ‘partial risk’ as the possibility of its price correlation, in the long run, is well established. The paper highlighted,

“Bitcoin investors and miners attempt to hedge only partially their risk. Mostly, they do this by purchasing Altcoins including Ether, Bitcoin Cash, or Bitcoin Satoshi Vision. The prices of these Altcoins with Bitcoin are correlated in the long run, however, in the short term, price co-movements are asynchronous.”

Source link

EDITOR’S CHOICE

What is Ethereum 2.0 and Why Does It Matter?

Is The Largest Crypto Exchange In The World?

Ripple Price Gains 2% But Bearish Bias Remains

Onecoin Victims Join Petition Seeking Establishment of European Crypto Fraud Compensation Fund

If Blockchain is the Next Big Tech Paradigm Shift, What Legal Issues Matter?

Emirex Exchange Receives Investment from Alpha Sigma Capital

Best Pick For You

News

  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Business News
  • Ethereum News
  • Litecoin News
  • Ripple News

Features

  • Market Analysis
  • Opinion
  • Explained
  • Policy & Regulations
  • Top Cryptocurrencies
  • Technology News

Market Tools

  • Market News
  • Price Indexes
  • Bitcoin Price Index
  • Ethereum Price Index
  • Bitcoin Cash Price Index
  • Litecoin Price Index
  • Monero Price Index
  • HeatmapPartner

Cryptopedia

  • Explained
  • Bitcoin101
  • Bitcoin Cash101
  • Ethereum101
  • ICO101
  • Ripple101

© 2020 Coingraph

No Result
View All Result
  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases

© 2020 Coingraph

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
bitcoin
Bitcoin (BTC) $ 10,867.48
ethereum
Ethereum (ETH) $ 367.19
tether
Tether (USDT) $ 0.999371
ripple
XRP (XRP) $ 0.243410
bitcoin-cash
Bitcoin Cash (BCH) $ 231.99
binancecoin
Binance Coin (BNB) $ 28.94
polkadot
Polkadot (DOT) $ 4.55
chainlink
Chainlink (LINK) $ 10.31
bitcoin-cash-sv
Bitcoin SV (BSV) $ 176.94
cardano
Cardano (ADA) $ 0.102429
litecoin
Litecoin (LTC) $ 47.87
crypto-com-chain
Crypto.com Coin (CRO) $ 0.151997
usd-coin
USD Coin (USDC) $ 0.999166
eos
EOS (EOS) $ 2.61
monero
Monero (XMR) $ 109.68
tron
TRON (TRX) $ 0.026585
okb
OKB (OKB) $ 6.34
tezos
Tezos (XTZ) $ 2.29
stellar
Stellar (XLM) $ 0.075700
neo
NEO (NEO) $ 20.00
cosmos
Cosmos (ATOM) $ 5.48
leo-token
LEO Token (LEO) $ 1.27
cdai
cDAI (CDAI) $ 0.020856
huobi-token
Huobi Token (HT) $ 4.73
nem
NEM (XEM) $ 0.117573
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 10,871.48
dai
Dai (DAI) $ 1.01
vechain
VeChain (VET) $ 0.013320
iota
IOTA (MIOTA) $ 0.282832
yearn-finance
yearn.finance (YFI) $ 24,199.00
theta-token
Theta Network (THETA) $ 0.713636
ethlend
Aave (LEND) $ 0.563411
dash
Dash (DASH) $ 70.58
uniswap
Uniswap (UNI) $ 4.42
zcash
Zcash (ZEC) $ 65.20
ethereum-classic
Ethereum Classic (ETC) $ 5.47
havven
Synthetix Network Token (SNX) $ 4.94
omisego
OMG Network (OMG) $ 4.32
maker
Maker (MKR) $ 591.99
uma
UMA (UMA) $ 9.10
binance-usd
Binance USD (BUSD) $ 1.00
compound-governance-token
Compound (COMP) $ 136.81
ontology
Ontology (ONT) $ 0.647953
celsius-degree-token
Celsius Network (CEL) $ 1.12
true-usd
TrueUSD (TUSD) $ 1.00
digibyte
DigiByte (DGB) $ 0.028251
basic-attention-token
Basic Attention Token (BAT) $ 0.244550
dogecoin
Dogecoin (DOGE) $ 0.002659
ftx-token
FTX Token (FTT) $ 3.58
kusama
Kusama (KSM) $ 35.60