Data shows the crypto market has become highly correlation again in the past week as all indexes have been closing following Bitcoin.<\/p>\n
According to the latest weekly report from Arcane Research<\/a>, the 30-day ETH-BTC correlation now has a value of 0.95.<\/p>\n To assess the performance of the different portions of the market as a whole, the coins are divided into the \u201ccrypto indexes.\u201d The criteria for putting any asset into an index is using its market cap.<\/p>\n The \u201cmarket cap<\/a>\u201d here simply refers to a measure of the total worth of a cryptocurrency\u2019s entire circulating supply.<\/p>\n There are three main categories of indexes: the \u201clarge caps,\u201d the \u201cmid caps,\u201d and the \u201csmall caps.\u201d As their names already imply, these indexes give a look at how the different sized coins are doing right now.<\/p>\n Here is a chart that shows how each of these altcoin indexes have performed against Bitcoin during the last month:<\/p>\n\n Looks like the small caps have performed the worst in recent days | Source: Arcane Research’s Ahead of the Curve – November 22<\/a><\/p>\n As you can see in the above graph, the market cap weighted indexes didn\u2019t diverge too much during the past month, but in the last week especially they have been following each other very closely.<\/p>\n Both Bitcoin and the mid caps currently stand at exactly 18% in the red during the period of the last thirty days, while the large caps have also only minimally performed worse as the index\u2019s returns are at 19% currently.<\/p>\n The small caps have taken a noticeably higher hit than the rest of the pack, as this index is 23% underwater in this timespan.<\/p>\n As is apparent from the data, assets across the crypto market have become pretty correlated in recent days.<\/p>\n The report additionally notes that the 30-day rolling correlation<\/a> between Bitcoin and Ethereum has now hit a value of 0.95. The correlation metric can have a maximum value of 1, which means these two cryptos are now almost fully moving in tandem.<\/p>\n Since the year 2016, the BTC-ETH correlation has only been seen at such high levels for 3% of the total time.<\/p>\n At the time of writing, Bitcoin\u2019s price<\/a> floats around $16.4k, down 1% in the last week. Below is a chart that shows the recent trend in the value of the crypto.<\/p>\n\n The price of the coin seems to have made some recovery from the plunge below $16k during the last couple of days | Source: BTCUSD on TradingView<\/a> <\/p>\n Data shows the crypto market has become highly correlation again in the past week as all indexes have been closing following Bitcoin.<\/p>\n According to the latest weekly report from Arcane Research<\/a>, the 30-day ETH-BTC correlation now has a value of 0.95.<\/p>\n To assess the performance of the different portions of the market as a whole, the coins are divided into the \u201ccrypto indexes.\u201d The criteria for putting any asset into an index is using its market cap.<\/p>\n The \u201cmarket cap<\/a>\u201d here simply refers to a measure of the total worth of a cryptocurrency\u2019s entire circulating supply.<\/p>\n There are three main categories of indexes: the \u201clarge caps,\u201d the \u201cmid caps,\u201d and the \u201csmall caps.\u201d As their names already imply, these indexes give a look at how the different sized coins are doing right now.<\/p>\n Here is a chart that shows how each of these altcoin indexes have performed against Bitcoin during the last month:<\/p>\n Looks like the small caps have performed the worst in recent days | Source: Arcane Research’s Ahead of the Curve – November 22<\/a><\/p>\n As you can see in the above graph, the market cap weighted indexes didn\u2019t diverge too much during the past month, but in the last week especially they have been following each other very closely.<\/p>\n Both Bitcoin and the mid caps currently stand at exactly 18% in the red during the period of the last thirty days, while the large caps have also only minimally performed worse as the index\u2019s returns are at 19% currently.<\/p>\n The small caps have taken a noticeably higher hit than the rest of the pack, as this index is 23% underwater in this timespan.<\/p>\n As is apparent from the data, assets across the crypto market have become pretty correlated in recent days.<\/p>\n The report additionally notes that the 30-day rolling correlation<\/a> between Bitcoin and Ethereum has now hit a value of 0.95. The correlation metric can have a maximum value of 1, which means these two cryptos are now almost fully moving in tandem.<\/p>\n Since the year 2016, the BTC-ETH correlation has only been seen at such high levels for 3% of the total time.<\/p>\n At the time of writing, Bitcoin\u2019s price<\/a> floats around $16.4k, down 1% in the last week. Below is a chart that shows the recent trend in the value of the crypto.<\/p>\nBitcoin Price<\/h2>\n
\nFeatured image from Art Rachen on Unsplash.com, charts from TradingView.com, Arcane Research<\/p>","protected":false},"excerpt":{"rendered":"All Market Cap Weighted Crypto Indexes Have Been Moving Together Recently<\/h2>\n
Bitcoin Price<\/h2>\n