Cryptocurrency Market Correlation Analysis
How different cryptocurrencies move together and apart
By GTO Market Research Team
•
May 06, 2018
CORRELATION PATTERNS
Cryptocurrencies exhibit complex correlation relationships:
High Correlation Groups
- Bitcoin and major altcoins (0.7-0.9 correlation)
- Similar technology projects
- Same ecosystem tokens
- Market cap peers
Medium Correlation Groups
- Different blockchain platforms
- Varied use case projects
- Mixed market cap ranges
- Diverse technology stacks
Low/Inverse Correlation
- Privacy coins vs regulated assets
- DeFi tokens vs centralized solutions
- Layer 1 vs Layer 2 solutions
- Different geographical focus
CORRELATION DRIVERS
Market Sentiment
- Bitcoin dominance influence
- Overall market mood
- Regulatory news impact
- Institutional activity
Technology Developments
- Protocol upgrades
- Network adoption rates
- Developer activity
- Partnership announcements
Economic Factors
- Macroeconomic conditions
- Monetary policy impacts
- Inflation hedging demand
- Risk-on/risk-off sentiment
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