Within its latest edition of its analysis/research bulletins, the exchange’s dedicated analytics arm, Binance Research, investigated numerous current phenomena and ongoing trends within the cryptocurrency markets.
Among them was correlation between the prices of Bitcoin & ‘altcoin‘, data from 2014-2019 confirming that the ninety days to mid-March represented the longest period of major correlation in market’s history.
As per the historical behaviour, such periods tend to trigger trend reversals. The ninety days to mid-March incorporated Bitcoin’s [BTC] ‘drop‘ from $6,500 USD to juts around $3,100 USD, leading Binance to suggest that markets might now rebound following the end of the record correlation period.
Explaining further, the exchange added:
“Having emerged from a period of the very best internal correlations in crypto-currency history, the data might support the notion that the cryptocurrency market has already bottomed out.”
As ‘reported‘ earlier, Binance had antecedently eyed the changing relationship between the prices of Bitcoin and altcoin, concluding that the altcoins were turning-out into less correlated with Bitcoin [BTC] but more thus against the USD.
The latest bulletin additionally held insights regarding cryptocurrency’s capitalist makeup: institutional investors management around 7% of the availability, Binance says, roughly equal to 1/13th of the institutional management of the U.S. stock market.
Juts last week, another well-known voice meantime endorsed the narrative that cryptocurrency markets had already bottomed.
Thomas Lee – The senior analyst and co-founder of Fundstrat Global Advisors, ‘outlined‘ to three-year high readings on his alleged BMI [Bitcoin Misery Index] as a potential proof that no additional downside would occur.
“The main takeaway is […] further proof for the market that the bear survival for Bitcoin likely ended at $3,000 USD,” he wrote earlier on Twitter.