Binance: Bitcoin correlation with other cryptocurrencies has significantly decreased

by in Cryptocurrency News

Bitcoin correlation with cryptocoins

Binance's research division published a quarterly report, in which it estimated the correlation of digital assets among themselves. Thus, according to it, the correlation between Bitcoin and the rest of the market has significantly decreased in comparison with the figures for the first quarter of this year.

In the second quarter, the price of bitcoin rose by 300%, and the dominance index for the first time in a long time overcame the milestone of 60%. This was the best quarterly market dynamics since the rally in 2017.

Low correlation with the rest of the market was also demonstrated by such assets as Binance Coin and Bitcoin SV. Their cost was strongly influenced by the so-called idiosyncratic factors (news background, events). At the same time, the existence of the “Binance effect” was again confirmed the coins in the listing correlate with the market much more strongly than assets that are not traded on this exchange.

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It is noteworthy that cryptocurrencies based on the Proof-Of-Work consensus algorithm demonstrated a significant drop in the correlation coefficient in relation to each other, on the contrary with coins oriented to increased privacy The same trend was observed in assets that perform the same or similar functions, for example, the correlation of XRP and XLM tokens exceeded the market average.

Separately, Binance Research reviewed projects that launched IEO on the Launchpad platform. Their quotes were largely determined by idiosyncratic factors and depended on the overall market situation less than other assets.