A new expert analysis is in the latest cryptocurrency news. According to an analyst at Binance Research, the correlation between Bitcoin and crypto is right now in the focus as the market has bottomed out.
The report, as featured on many best cryptocurrency news sites, cites a high correlation between the price movements of Bitcoin and altcoins that lasted 90 days, ending on March 14th as an indication that a market reversal is finally on the horizon.
As the report cites:
“Within this period, the composite altcoin correlation with Bitcoin also hit an all-time high (13 Mar 2018). That coincided with Bitcoin’s fall from the $6,000 range to the $3,000 range.
This high correlation suggests that market sentiment has already found a local maximum during that period, and a trend reversal may possibly ensue.”
In it, it can also be seen that it is still early days for Bitcoin and crypto and the institutional participants in the crypto market, finding out that about 7% of all cryptocurrencies are held by institutional investors.
“An estimated 7% of the crypto assets are held by institutional investors, which is almost one-thirteenth of the institutional holdings proportion for the U.S. stock market.”
Among the key takeaways is also the high turnover rates for crypto assets. As the report states:
“Higher turnover rates for crypto assets (five times higher than that of the U.S. stock market) indicate that participants in the crypto asset industry could be more active or reactionary than in traditional markets.”
To sum things up, the report again notes the correlation between Bitcoin and crypto and the price “inflection point” stating:
“Extreme internal correlation among coins is often accompanied by a price “inflection point. Having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the crypto market has already bottomed out.”
Let’s hope that the main cryptocurrencies are stable now – and that a surge is coming.
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