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list1
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crypto currency correlation

September 4th, 2017, 12:30 pm

I do not watch changes of the crypto currency rates but it is interesting whether or not it is known which of the well known assets or primary currencies most correlated with say bitcoin?
 
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ppauper
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Re: crypto currency correlation

September 5th, 2017, 7:22 am

interesting question!
 
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Alan
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Re: crypto currency correlation

September 5th, 2017, 3:05 pm

You can google for some studies. Just from casual observation:

1. cryptos have little correlation with broad-based equity movements, interest rates, gold, and most broad 'asset classes'.

2. there are generally strong positive correlations among the cryptos themselves: for example, between BTC/USD vs ETH/USD.

3. there may be some mild positive correlation of ETH/USD with the graphics card makers (AMD, NVDA), as AFAIK you can mine ETH from gpu's.
(and so spill-over correlations between BTC/USD and the card guys because of 2.)

4. there is a lot of talk of BTC/USD correlation with CNY/USD but little convincing evidence. But this could change if bitcoin ever becomes an important method of capital flight from China.
 
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list1
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Re: crypto currency correlation

September 5th, 2017, 3:49 pm

Thank you for reply. Whether one can say then that BTC actually does not tie to any of the primary traded assets?
 
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Alan
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Re: crypto currency correlation

September 5th, 2017, 3:57 pm

See 1.
 
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list1
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Re: crypto currency correlation

September 5th, 2017, 4:16 pm

if we look at the returns on buying - selling trades where the profit comes from. Whether the profit is based of the attraction in trading BTC?