BitCoin’s Alt Coin Influence In Decline, Research Finds

BitCoin’s Alt Coin Influence In Decline, Research Finds

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

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.

Recently Similar News

Latest Guides

Latest News


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

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

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
Blockchain,Changelly,Cryptocurrency,Exchange Platforms

Changelly Adds Ardor, Ignis, and NXT to Changelly PRO

Changelly, the online cryptocurrency exchanges, has added three more tradable assets to their Changelly PRO platform. Changelly, the large online crypto exchange, has recently added an additional three cryptocurrencies to their Changelly PRO platform, Ardor, Ignis, and NXT. All three tokens developed by Jelurida will be tradable against BTC as ARDR/BTC, IGNIS/BTC, and NXT/BTC. Jelurida […]

6 November, 2020
Crypto Wallets,Exchange Platforms,Kraken,Ledger

Ledger Phishing Scam is Targeting Crypto Wallet Users

Ledger, the cryptocurrency wallet company, has been massively affected by a data breach and phishing scam. Ledger, the world renowned cryptocurrency hardware wallet producer, is facing a lot of problems with a data breach that is being used to target their customers. Kraken Intelligence, the intelligence arm of the Kraken cryptocurrency exchange, analyzes this data […]

5 November, 2020

Ethereum on Track to be First Blockchain To Process $1 Trillion In Yearly Transactions

Ethereum, the second largest cryptocurrency by market cap, is preparing to break the $1 trillion mark in yearly processing. Ethererum, the largest cryptocurrency behind Bitcoin, is on track to be the first blockchain to process over $1 trillion in transactions in a single year. Currently, the Ethereum network is processing more than double the amount […]

4 November, 2020
Binance,Blockchain,Cryptocurrency,Exchange Platforms

Binance is Giving Away $20,000 in Fifth Learn and Earn Series

Binance, the largest online cryptocurrency exchange, is hosting its fifth learn and earn series, this time with Orion Protocol. Binance, the worlds largest cryptocurrency exchange, will be hosting their 5th Learn and Earn campaign in collaboration with the Orion Protocol. In this campaign, Binance will be giving away $20,000 worth of ORN, the native cryptocurrency […]

3 November, 2020
Bitcoin,Blockchain,Cryptocurrency,Exchange Platforms

Bitcoin Monthly Prices Finishes at Second All-Time High

At the end of October, Bitcoin has registered its second highest closing price of all time. Bitcoin bulls continue to rejoice as Bitcoin closes at its second highest monthly price in the history of the digital currency. Bitcoin closed October with a price hovering right around $13,800, the second highest monthly price finish besides the […]

2 November, 2020