The Future Coin

Bitcoin

$31,803.80

BTC -1.12%

Ethereum

$1,315.27

ETH 5.69%

XRP

$0.27

XRP 0.22%

Litecoin

$137.64

LTC -1.04%

EOS

$2.70

EOS -1.15%

  • 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 Opinion

Ethereum (ETH) is Also Highly Correlated with the S&P 500

by The Future Coin
June 25, 2020
in Opinion
0
Ethereum (ETH) is Also Highly Correlated with the S&P 500
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

In brief:

  • Bitcoin’s correlation with the S&P 500 is still very much intact as witnessed in yesterday’s dip.
  • Ethereum is also highly correlated to BTC. 
  • Therefore, logic dictates that Ethereum is also highly correlated to the S&P 500. 
  • If ETH is a measure of the alt-market, then the entire alt-coin market is also correlated to the traditional stock market. 

Bitcoin’s correlation with the traditional stock market has been the focus of many analysts with a majority picking the S&P 500 to demonstrate this fact. Yesterday’s dip by BTC once again reminded us that the future of the King of Crypto is firmly in the hands of institutional investors and the traditional stock market. The selling in the traditional markets was caused by an alarming increment of new cases of COVID19 and fears that a global second wave of the Coronavirus is very much a reality. These fears were organically transferred to the crypto markets as witnessed in the dip by Bitcoin (BTC) and Ethereum (ETH).

Ethereum is Correlated to Bitcoin and thus the S&P 500

As earlier mentioned, the majority of the correlation research between the crypto and the traditional markets is carried out by comparing Bitcoin to the S&P 500. This often leaves Ethereum investors with no other option than to opt to use this correlation indirectly since BTC pretty much dictates the direction of the crypto markets.

It is with this correlation between Ethereum and Bitcoin, that it can be concluded that ETH is also highly correlated to the S&P 500.

Exploring these correlations on Coinmetrics between the three pairs of Ethereum and Bitcoin, Bitcoin and the S&P 500, and Ethereum and S&P 500, results in the chart below.

Ethereum (ETH) is Also Highly Correlated with the S&P 500 11

Further dissecting the chart, the following observations can be made.

  • Ethereum’s correlation with Bitcoin is high at approximately 0.89.
  • Ethereum’s correlation to the S&P 500 mimics Bitcoin’s correlation with the S&P 500.
  • The correlation between Ethereum and the S&P 500 (0.31) is higher than between Bitcoin and the S&P 500 (0.197).

Conclusion

Since the Coronavirus crash of mid-March, Bitcoin has been highly correlated to the S&P 500 and has been the focus of many analysts thus far. This is done under the assumption that BTC dictates the crypto markets. However, Ethereum’s correlation with the S&P 500 is also very much evident and could be a better measure of the overall health of the alt-coin markets rather than using BTC. The latter’s dominance in the crypto markets often fluctuates and Ethereum is a better measure of the overall health of the alt-coin market.

Only time will tell if Ethereum’s correlation with the traditional markets will become the focus of analysts and even result in ETH’s very own stock-to-flow model.

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.


Google News EWN

Source link

EDITOR’S CHOICE

Covid-19 Impact on Global Blockchain In Government Market (2020-2026) | Potential growth, attractive valuation make it is a long-term investment | Top Players: IBM, SAP, Microsoft, Oracle, Deloitte, etc.

McCarthy Walks Back Trump Criticism And Cheney Endorsement In Struggle To Unify Caucus

Select Group of Altcoins Are Set To Explode, Says Crypto Trader Elliot Wainman

Cyberpunk 2077’s dystopian future can be avoided with blockchain tech

Hair growth business takes off in Bartlett – Memphis Local, Sports, Business & Food News

Ethereum, Polkadot, BinanceChain and More – Blockchain Technology Trends for 2021

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) $ 32,064.00
ethereum
Ethereum (ETH) $ 1,315.33
tether
Tether (USDT) $ 0.999710
polkadot
Polkadot (DOT) $ 17.69
ripple
XRP (XRP) $ 0.272743
cardano
Cardano (ADA) $ 0.354449
chainlink
Chainlink (LINK) $ 23.92
litecoin
Litecoin (LTC) $ 137.94
bitcoin-cash
Bitcoin Cash (BCH) $ 432.82
binancecoin
Binance Coin (BNB) $ 41.17
stellar
Stellar (XLM) $ 0.272672
usd-coin
USD Coin (USDC) $ 0.996213
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 32,117.00
bitcoin-cash-sv
Bitcoin SV (BSV) $ 173.06
aave
Aave (AAVE) $ 245.97
uniswap
Uniswap (UNI) $ 10.81
eos
EOS (EOS) $ 2.71
monero
Monero (XMR) $ 138.02
havven
Synthetix Network Token (SNX) $ 16.67
tezos
Tezos (XTZ) $ 3.11
tron
TRON (TRX) $ 0.029953
cosmos
Cosmos (ATOM) $ 8.36
vechain
VeChain (VET) $ 0.030781
nem
NEM (XEM) $ 0.217232
theta-token
Theta Network (THETA) $ 1.95
celsius-degree-token
Celsius Network (CEL) $ 4.85
neo
NEO (NEO) $ 24.47
crypto-com-chain
Crypto.com Coin (CRO) $ 0.072359
okb
OKB (OKB) $ 5.90
dai
Dai (DAI) $ 1.00
compound-ether
cETH (CETH) $ 26.45
cdai
cDAI (CDAI) $ 0.020983
iota
IOTA (MIOTA) $ 0.464595
leo-token
LEO Token (LEO) $ 1.32
maker
Maker (MKR) $ 1,409.84
binance-usd
Binance USD (BUSD) $ 0.997995
dogecoin
Dogecoin (DOGE) $ 0.008798
huobi-token
Huobi Token (HT) $ 5.70
dash
Dash (DASH) $ 106.80
filecoin
Filecoin (FIL) $ 22.92
compound-usd-coin
cUSDC (CUSDC) $ 0.021460
sushi
Sushi (SUSHI) $ 7.80
avalanche-2
Avalanche (AVAX) $ 12.75
yearn-finance
yearn.finance (YFI) $ 31,715.00
kusama
Kusama (KSM) $ 105.65
zcash
Zcash (ZEC) $ 88.25
solana
Solana (SOL) $ 3.59
compound-governance-token
Compound (COMP) $ 219.18
ftx-token
FTX Token (FTT) $ 9.93
ethereum-classic
Ethereum Classic (ETC) $ 7.48