BitCoin’s Alt Coin Influence In Decline, Research Finds

BitCoin’s Alt Coin Influence In Decline, Research Finds

In a new piece of research uncovered by the research arm of Binance, it was highlighted that during the recent surge in all crypto’s price less correlation was seen between bitcoin and altcoins.

During the last 3 months or so, we have witnessed increases in value across the board, which saw bitcoin increase by 300%, soaring past the $10,000 mark.  It has always been the case that when this happens other alt-coins follow suit and increase in value at a similar rate and indeed, it was.

Bitcoin to AltCoin Average Correlation Drops

Overall, the recent period of trading was the most lucrative since 2017 and the 3rd best quarter since as far back as 2014.  However, this time around it has become apparent that the influence from the top coin on the market was not as big a factor as it has been in the past, according to Binance research.

They discovered, “Correlations declined between Bitcoin and altcoins, with a decrease in average correlation of -0.11. As indicated in the previous section, the overall market capitalization rose by 139%, whereas altcoin aggregated market capitalization (including stablecoins) increased by ‘just’ 71% over the same period.”

New Correlations to Consider.

However, that is not that was discovered and it emerged that other factors have been in play over the second quarter of this year’s trading. For example, what was described as “idiosyncratic factors”, i.e. a buzz around coins due to their name being in the news or holding special events.

This was attributed to an increase in value in coins such as Binance’s own native, Binance Coin (BNB), which was ever-popular in the news, as well as Chainlink, who launched deals with Google and Matic. While Bitcoin SV, which was delisted from various exchange platforms, saw peculiar price fluctuation.

As well as this, coins that were similar in their nature and functions saw correlations trends matching with one another. Many proof-of-work tokens “exhibited lower average correlations with other cryptoassets”, this affected coins such as Bitcoin Cash, Dogecoin, Ethereum Classic, Bitcoin Gold. While privacy tokens and coins with similar functionality, Ripple and Stellar Lumens, both showed increase correlations with one another.

Very interesting trends there for traders from Binance so we hope you had a pen and paper ready.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

Bitcoin,CoinMarketCap,Ethereum

Cryptocurrency Market Cap Jumps Past $2 Trillion

Cryptocurrencies continue to make headline news around the world as the total market cap surpassed $2 trillion on Monday. Supported by increased interest from institutional investors, celebrities, and retail investors, digital coins are now worth more than Apple Inc. Bitcoin has, once again, played a major role in the sector’s market cap. The world’s first […]

6 April, 2021
Digital Currency,Ethereum,Stablecoin

VISA Set To Support Cryptocurrency Settlements

The global payments corporation, VISA, announced on Monday that it is making preparations to allow USD Coin (USDC) to settle transactions within its network. This move is being viewed by industry analysts as yet another clear sign that cryptocurrencies are being accepted by major institutions within the traditional financial industry. USDC was selected by VISA […]

30 March, 2021
Casino,Ethereum,Gambling

CasinoFair Temporarily Shuts Down Amid Network Congestion

The popular cryptocurrency casino, CasinoFair, has announced in a recent blog post that it will be temporarily stopping its gaming services. Citing unsustainable congestion on the Ethereum network as the main reason for this pause, the casino reassured its players that it is “actively researching solutions and hope to be back with a new range […]

26 March, 2021
Bitcoin,Coinbase,CoinMarketCap

Significant Bitcoin Drops As Coinbase Announces IPO

The cryptocurrency market is back in turmoil following yet another volatile week where Bitcoin almost reached a record-breaking value of $60,000. Bitcoin drops are nothing new, but the recent 25% decrease has caused panic amongst even traders with an experience of major currency fluctuations. The latest drop comes as Coinbase, one of the world’s largest […]

1 March, 2021
Cybercrime,Scam,Trezor

Trezor Warns Users About Fake Mobile App

Trezor is warning users of a malicious mobile application featured on Google Play which appears to be associated with the wallet provider. At least 1,000 users have already downloaded this software, and it is likely that some have unwittingly provided their seed phrase to unlock their funds. Both Trezor and SatoshiLabs have confirmed the existence […]

26 January, 2021
Bitcoin,eToro,Trading

eToro Temporarily Raises Minimum Deposit To $1,000

For the past few weeks, the increase in Bitcoin’s price has led to a massive interest in cryptocurrency trading. eToro has been overwhelmed by new registrations and has decided to temporarily raise the minimum deposit from $200 to $1,000. Although 2021 has barely gotten started, it promises to be an exciting time to invest in […]

11 January, 2021
Bitcoin,Investment,Trading

Global Cryptocurrency Market Value Surpasses $1 Trillion

Thursday has proven to be a monumental day for cryptocurrencies as the world’s combined value tops the $1 Trillion mark. Energised by a substantial rise in the value of Bitcoin in recent months, the volatile crypto market has reached a once-unreachable value. Following the latest Bitcoin Halving in May 2020, the world’s largest digital token […]

10 January, 2021
Sponsored

Victory over virus: SiGMA Virtual Expo hosts 100+ exhibitors

SiGMA Europe and AIBC Virtual Expos launch with record breaking attendance, providing a cure to the industry’s events sector In the light of this year’s changes in our everyday lives, SiGMA was close to having to stop doing what it does best; creating networks for people through the company’s iconic physical events, but luckily, the […]

26 November, 2020