In line with a recent ‘report‘ published by Binance, Bitcoin [BTC] is becoming lesser & lesser correlated with other alternative ‘cryptocurrencies‘ in Q2 2019 due to a possible “flight-to-quality” within the recent ‘Bull-Run‘.
Within its “2019 Q2 Crypto-Correlations Review,” Binance outlined that the average correlation between Bitcoin along with other leading crypto assets declined to 0.61 from 0.73 in Q1 2019.
Correlation rate is a measure that outlined the degree of the relationship between assets, with the values ranging between -1.0 and 1.0. As such, assets with a correlation over 0.5 are considered to own positive correlations, whereas those below -0.5 are considered to own negative ones.
As per the new report, general correlation among leading cryptocurrencies has remained “quite high” in Q2 2019, while Bitcoin [BTC] correlation dropped.
However at the same time, some cryptocurrencies have seen vital increase in correlation over the past 3 months, with Tezos [XTZ], Ontology [ONT] and Tron [TRX] accounting for the major growth in average correlation with alternative crypto assets.
In distinction, Bitcoin SV [BSV] has seen the major decline in average correlation, that was probably caused by its delistings from two leading cryptocurrency exchanges namely ‘Kraken’ and ‘Binance’, the report adds.
As ‘reported‘ earlier today, Dogecoin [DOGE] listing on Binance exchange, has conjointly seen a major decorrelation against alternative crypto assets in Q2, the review reads. However, the cryptocurrency has maintained a major correlation with Litecoin [LTC], that accounts for 0.55. In line with Binance, DOGE/LTC positive value correlation is probably to be due to the merge mining of the 2 coins.
Within the review, Binance noted a “Binance effect,” that envisions that coins that aren’t listed on Binance have seen lower average correlations than the ‘cryptocurrencies‘ listed on the exchange. Following listing on Binance, DOGE has seen the foremost vital ‘growth‘ among major crypto assets, with its value having spiked over 30% within just a few hours.
In their Q1 2019 cryptocurrency correlation report, Binance exchange ‘found‘ that the price correlations among major crypto assets hiked against the USD, but however dropped in terms of Bitcoin [BTC].