Frozen? Bitcoin’s price correlation with other assets is not yet defined

Fidelity’s report states that Bitcoin is an uncorrelated asset generates discussion, as not everyone agrees with the assessment.

A recent report by institutional cryptomoney company Fidelity Digital Assets concluded that Bitcoin (BTC) shows very little price correlation with the main financial assets, according to data from the last five years. Over the course of 2020, Bitcoin has gained greater adoption in conventional finance, which could logically affect the asset correlation or lack thereof. Has the Bitcoin correlation changed in 2020?

Ria Bhutoria, research director at Fidelity Digital Assets, told Cointelegraph by email: „Bitcoin has experienced higher positive correlations with other assets over shorter periods of time, especially during periods of uncertainty and turbulence, and even before 2020.

Amid growing concerns about COVID-19 and the prevention measures from March 2020, Bitcoin’s price plummeted, apparently in line with the US stock market. „The increased correlation between Bitcoin and other assets was a consequence of a short-term liquidity crisis that affected many asset classes,“ Bhutoria said of the March drop. Essentially, a lot of people rushed to sell their financial assets for cash when times became uncertain around the news of the COVID-19 pandemic. She added:

She added: „As a result, the correlation of all these assets with each other increased. With respect to Bitcoin, another possible reason could be a greater overlap in market infrastructure and among market participants in the traditional and digital asset markets“.

Fidelity published a detailed report in October entitled „Bitcoin’s Investment Thesis: Bitcoin’s Role as an Alternative Investment“. Written by Bhutoria, the report addressed a number of issues. One particular segment of the report noted the lack of correlation of Bitcoin with other financial assets, including US stocks and gold. Correlation is a much-debated issue in the crypt-currency industry.

Using data from January 2015 to September 2020, Fidelity’s report concluded that Bitcoin performed differently from core assets, indicating virtually no correlation with other markets for that time period. BTC scored 0.11 in a range between -1 and 1. A rating of 1 means that asset prices travel exactly in step with each other, while a rating of -1 means exactly the opposite price action. Any asset with a score of 0 travels its own price path, unaffected when others move.

In addition to the March drop, many other instances have shown an apparent correlation between Bitcoin and traditional markets, at least at certain points. The element of adoption could influence the equation, making Crowd Millionaire more correlated than years before, an aspect pointed out in the Fidelity report. „Bitcoin is a young asset that, until recently, was not linked to traditional markets,“ the report says, adding: „Because it is embedded in institutional portfolios, it may increasingly correlate with other assets.

Bitcoin has seen significant widespread adoption by 2020. One sign is that a number of traditional financial players, such as MicroStrategy, have built up significant Bitcoin positions. PayPal also recently announced plans to add Bitcoin to its platform in 2020, driving the asset even further into the spotlight.

„Bitcoin’s long-term correlations with other assets may remain low, given Bitcoin’s different risk and return factors against other asset classes and its dynamic and narrative use cases,“ Bhutoria said, adding:

„If investors with longer time horizons and convictions are assigned to Bitcoin, the magnitude of the spikes in short-term correlations with other assets in times of uncertainty could also decrease. These are assumptions that we will continue to update as we get more data and a better understanding of Bitcoin’s behaviour in a prolonged crisis“.

Over the years, other industry players have also influenced Bitcoin’s pricing in line with other markets. Morgan Creek Digital co-founder Anthony Pompliano has long defended Bitcoin as an uncorrelated asset.

„All assets tend to correlate to 1 in a liquidity crisis,“ Pompliano told Cointelegraph in an email, which also coincides with Bhutoria’s explanation. He added:

„We saw a liquidity crisis earlier this year, so it is natural to expect correlations to increase during these times. We are seeing a decoupling in the last few weeks and I expect we will see a return to low or no correlation in the coming months“.

Prior to the launch of Bitcoin in 2009, the 2007-2008 financial crisis generated similar liquidity problems. As the public often compares Bitcoin to gold, looking at gold during this crisis adds perspective. „We saw that gold fell by 30 percent from the liquidity crisis during the summer of 2008, along with all assets with a trend to a correlation of 1 during the same time,“ Pompliano wrote, adding:

He added: „Finally, the assets were later decoupled and history can teach a great lesson here too“.

Erik Finman, a Bitcoin millionaire who invested in BTC at the age of 12 in 2011, has a more tentative approach to Bitcoin’s lack of correlation that may have changed recently. „We have to wait and see,“ he told Cointelegraph, noting:

„I tend to lean towards the fact that Bitcoin is not tied to anything else in the long term, as its value is determined by its own technology and its relationship to the world. Any correlation will be short term and will be forced by investors“.

According to the three responses described above, Bitcoin apparently maintains at least some correlation with other assets during isolated short-term events. However, on a wider time scale and scale, BTC continues to prove to be an uncorrelated asset, at least so far.

BlockFi erwirbt einen Anteil von 5% am Grayscale Bitcoin Trust (GBTC) und wird ein Top-Aktionär

BlockFi, das auf Kryptokredite ausgerichtete Unternehmen, hat in den Grayscale Bitcoin Trust (GBTC) investiert und ist einer der größten Anteilseigner geworden. Laut einer Einreichung bei der US Securities Exchange Commission (SEC) hat das Unternehmen 5,07% des GBTC Trust gekauft.

Insbesondere müssen Unternehmen in den USA über das Formular 13G Bericht erstatten, wenn sie mehr als 5% an einem anderen Unternehmen besitzen

Aus der Einreichung geht ferner hervor, dass die von Immediate Edge erworbenen Aktien 24.235.578 des GBTC Trust entsprechen. Nach den neuesten jährlichen Grayscale-Einreichungen beträgt dieser Wert ungefähr 24.235.578 Bitcoins, da jede Aktie einen Preis von 0,0001 BTC hat. Gemäß den geltenden Krypto-Marktpreisen beläuft sich die BlockFi-Investition in GBTC auf rund 328 Millionen US-Dollar.

GBTC ist seit 2013 in Betrieb und wurde als Bitcoin-Kaufstraße genutzt, ohne die zugrunde liegende Krypto selbst zu besitzen. Derzeit verwaltet das Unternehmen einen AUM von über 6 Milliarden US-Dollar und erwirbt Anfang des Jahres eine SEC-Lizenz . In den letzten Monaten ist sein Wert exponentiell gestiegen, wobei die Zuflüsse im dritten Quartal Rekordhöhen erreichten und die Marke von 1 Milliarde US-Dollar erreichten .

Der CEO von BlockFi, Zac Price, sagte, dass der Schritt, in GBTC zu investieren, Teil der Bemühungen ist, ihre Kunden besser zu bedienen

„Neben den mit dem Produkt verbundenen Investitionsmöglichkeiten gibt es Kreditmärkte, und unsere bedeutende Beteiligung ermöglicht es uns, einen Mehrwert für unsere Kunden und den Markt für liquide und illiquide GBTC-Aktien zu schaffen.“

BlockFi ist nicht das einzige kryptofokussierte Unternehmen, das einen bedeutenden Anteil am GBTC Trust erworben hat. Bereits im Juni kaufte Three Arrows Capital 21.057.237 Aktien, was ungefähr 6,26% des damaligen Gesamtvertrauens entspricht.

Alcuni portafogli Bitcoin Paramount per lo stoccaggio sicuro dei Bitcoin!

Quando si parla del mondo delle crittocittà, la prima cosa che viene in mente è Bitcoin.

Da quando è nato il bitcoin, anche dopo essere stato volatile, la sua popolarità sta aumentando rapidamente. Con l’aumento della popolarità, il suo prezzo è aumentato e vale migliaia di dollari al giorno d’oggi. Gli individui in questo momento sono più interessati ad investire in bitcoin o in crittocurrenti invece che in valuta estera. Ma prima di possedere bitcoin, è fondamentale avere una conoscenza completa su come conservare i bitcoin.

Poiché i bitcoin non hanno un aspetto fisico, vengono conservati in un portafoglio virtuale. Un portafoglio digitale è un software sulla nuvola o il computer di un utente. I portafogli svolgono il lavoro di proteggere i bitcoin e le transazioni da frodi o attacchi. Molti diversi tipi di portafogli digitali differiscono per le loro caratteristiche e livelli di sicurezza come per i commercianti di bitcoin. La preoccupazione principale nella scelta del portafoglio è la sicurezza.

Una guida per principianti agli Xcoin
Esodo

Exodus è un popolare cellulare oltre che un portafoglio da tavolo per i principianti. È stato appositamente progettato per fornire facilità ai principianti in quanto ha un’interfaccia utente abbastanza semplice e uno scambio di bitcoin integrato. Questo portafoglio digitale permette agli utenti di scambiare un numero enorme di valute crittografiche popolari. Fornisce la possibilità di scambiare più di 100 diverse valute crittografiche.

L’interfaccia di Exodus è user-friendly e fornisce supporto 24/7 agli utenti, specialmente ai principianti nel mondo delle valute crittografiche. È costruita per i principianti per aiutarli a comprendere il mercato del bitcoin, e gli utenti avanzati lo trovano carente perché non ci sono funzioni avanzate. Poiché questo portafoglio è un portafoglio a fonte chiusa, potrebbe avere qualche problema di sicurezza.

Micelio

Mycelium è un portafoglio mobile bitcoin ed è un open-source per gli utenti. Questo portafoglio mobile supporta solo bitcoin e nessun’altra valuta. Offre un’ottima interfaccia utente e ha uno scambio incorporato. Mycelium è uno dei portafogli che è stato introdotto così presto nello spazio cripto. Questo portafoglio permette di impostare la tassa di transazione in anticipo, in quanto questo vi aiuterà a sapere quanto tempo dovete aspettare per completare la transazione.

Fornisce grande sicurezza ai bitcoin perché è un dispositivo di archiviazione offline. Essendo solo un portafoglio mobile, può essere un po‘ confuso per chi lo utilizza per la prima volta.

Trezor Modello T

Trezor è la conservazione a freddo dei portafogli, che offre agli utenti la possibilità di accedere a scambi di terze parti. Il modello T di Trezor è il modello di portafoglio hardware di seconda generazione. Si tratta di un portafoglio molto conveniente, ma è abbastanza costoso e costa circa 170 dollari.

Questo nuovo modello fornisce agli utenti un touch screen che lo rende facile da usare. Ha uno slot per schede MicroSD che permette agli utenti di utilizzare le schede SD per proteggerle criptando il PIN. La cosa migliore di questo portafoglio è che supporta oltre 1400 valute crittografiche ed è considerato un portafoglio sicuro.

Ledger Nano X

Ledger Nano X è il più popolare portafoglio hardware di seconda generazione che ha guadagnato popolarità essendo nello spazio cripto per molti anni. Questo portafoglio ha una chiavetta USB, ed è possibile collegarlo al proprio dispositivo Android o iOS, e non è richiesto un computer. Ledger Nano X supporta più di 1500 valute crittografiche, e non ci si può fermare perché la lista continua a crescere ogni anno di più.

Si tratta di un portafoglio hardware per la conservazione a freddo, ma fornisce la funzione software Ledger Live che supporta quasi tutti gli utenti in possesso fornendo un’interfaccia utente diversa. Questo è il portafoglio bitcoin più popolare nel mondo della crittovaluta.

Electrum

Electrum è il più antico e originale portafoglio bitcoin. È stato lanciato nel 2011 appena due anni dopo la creazione di bitcoin. L’interfaccia utente di questo portafoglio è eccezionale ed è appositamente progettata per gli utenti avanzati. I principianti potrebbero trovarlo confuso a causa delle complesse opzioni. Questo è un portafoglio open-source, e fornisce la possibilità di impostare le spese di transazione. Permette inoltre agli utenti di scegliere il livello di sicurezza pagando denaro extra per la sicurezza che desiderano.

BitMEX falls from grace – Bitcoin price (BTC) rises

Bullish BTC signal: More and more Bitcoin investors despite sluggish share price

Bitcoin-Hodler prepare for stormy times

The accusations against BitMEX have torn a deep hole in the stock market reserves, while crypto currencies are gradually finding their way to the cash register. The market update.

The Bitcoin exchange rate (BTC) heralds the new trading week with a plus of 0.8 percent. To editorship conclusion the largest crypto currency notes with 10.681 US Dollar, bends on week view however around 0,7 per cent.

BitMEX mixes up the Bitcoin ecosystem

The indictment of the U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC) against the Bitcoin exchange BitMEX has triggered a quake in the crypto ecosystem. Last week it became known that BitMEX could be an unregistered trading platform. Anti-Money Laundering Guidelines (AML) and Know Your Customer Rules (KYC) are said to have been breached. The report was not without consequences.

Since then, more than 45,000 Bitcoin with a value of almost half a billion US dollars have been withdrawn from the exchange. Meanwhile, reserves have melted down to just under 120,000 Bitcoin, a 27 percent drop. [glassnode-studio_bitcoin-balance-on-exchanges-bitmex]

Most investors packed their bags last Friday. 44,000 Bitcoin left the stock exchange stocks only on this day. As Glassnode writes, 30 percent of this was transferred to the competition, namely Gemini and Binance.

It is questionable whether BitMEX will quickly regain the confidence of investors. Other providers are quickly closing the gap of the (still) top 5 crypto derivatives exchange.

Thanks to Bitcoin a roof over your head

In a study accomplished by the FinTech Blockcard the consumer behavior of crypto investors was examined. The result of the Crypto Spending Report is surprising.

Because the majority of the more than 35,000 participants uses crypto currencies such as Bitcoin for everyday payment functions. The fewest hodln accordingly their Kryptos.

Over 70 per cent of the asked ones indicated finally to have spent in the last 12 months crypto currencies while scarcely 30 per cent left their Kryptos untouched in the Wallet.

Nearly 10 percent buy food with digital currencies, 8 percent each spend crypto currencies for clothing and education and 5 percent pay their rent with crypto currencies. By far the largest percentage in the „More Crypto“ category is not surprising. Over 77 per cent buy with crypto currencies evenly further crypto currencies, keyword: Trading.

With the height of the expenditures there is a large dispersion. A third of the asked ones indicated to have spent between 1.000 and 10.000 US Dollar at crypto currencies in the last 12 months. A quarter spent between 100 and 1,000 US Dollar in Kryptos, with scarcely 15 per cent it was only between 1 and 100 US Dollar. [5.10. 1]

With 76 per cent the clear majority of the participants indicated besides to want to pay also further with crypto currencies. Only 14 percent withhold their cryptos. Nearly 10 per cent are undecided and wait for the next market developments.
Last hurdles

On the final question, which must happen, so that more Kryptowährungen flow into more payment procedures, the unanimous demand read: More acceptance places. In addition, the infrastructure had to be expanded and made more user-friendly, i.e. faster transactions and more intuitive user interfaces.

The study shows: Cryptocurrencies such as Bitcoin are being integrated into ever more payment processes. Most crypto owners use virtual currencies for everyday transactions. Only the lack of acceptance prevents „digital currencies from playing a more significant role in retail“. Once this hurdle has been overcome, there is nothing to prevent widespread adaptation:

If we were to see even the slightest mass introduction, we could assume that digital currencies would take up a more significant share of global payment traffic.