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And The Cryptocurrency Most Similar To Bitcoin For Gains Is…

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Bitcoin is still in a league of its own when its comes to its behavior in terms of fiat currencies such as the US dollar. However, one asset in particular shows almost 69% correlation to BTC monthly price gains, new data shows.


Data: BCH Mimics BTC Most Closely

Uploading findings to Twitter on September 24, analyst Skew noted that at present no other coin bears more than a 70% correlation to Bitcoin 00 when it comes to gains.

The statistics shed new light on altcoin behavior, which previously tended to follow Bitcoin’s moves up and down.

“There is not a single crypto with a greater than 70% correlation of daily returns to Bitcoin on a 1 month basis,” Skew summarized in comments.

Under current conditions, the most closely-correlated altcoin to BTC is BCH. The token has a monthly correlation of 69.8%, followed by Ethereum on 59.8%.

The numbers appeared to take Skew by surprise, given that Bitcoin Cash is a hard fork of Bitcoin itself.

“Interestingly, BCH is more correlated to ETH than to BTC!” he added. Bitcoin Cash correlation to Ethereum stands at 84.2%.

The two most closely-correlated coins in the top ten cryptocurrencies by market cap also involve Bitcoin Cash – but this time against Litecoin with 87.6%.

As far as BTC goes, Stellar and XRP are the least correlated in terms of gains, on 15.6% and 23% respectively. 

Altcoins Fall In Line – Behind Bitcoin

September nonetheless witnessed a return to more standard behavior for altcoins versus the leading cryptocurrency. After several months when tokens seemed to act independently of BTC gains, the standard setup appeared to reappear as September progressed.

Previously, analysts en masse called the end of altcoins altogether, as many tokens put in big losses regardless of BTC wins or losses. 

Several weeks ago, however, other research challenged the theory, noting that the majority of altcoins were back to tracking a market dictated to a great extent by Bitcoin.

“To me, it means that we are still in an early industry, where the movements between cryptocurrencies have not settled,” its author, trading bot HodlBot creator Anthony Xie wrote. 

So while looking at this data is interesting and can tell us about the past, take it with a grain of salt when moving towards the future.

That future is in doubt once again this week as altcoins take a fresh hit and Bitcoin slides further towards multi-week lows. At press time, BTC/USD traded at just $9,420, its lowest since the end of August.

What do you think about the altcoin correlation data? Let us know in the comments below!


Images via Shutterstock, Twitter @Skew_markets





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More Americans have heard of Dogecoin than Ethereum: Survey

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In just over five years since it launched, Ethereum introduced the world to smart contracts, decentralized finance, yield farming and non-fungible tokens, and has long stood just behind Bitcoin as the second-largest blockchain project by market capitalization.

Dogecoin (DOGE) is a meme cryptocurrency which has provided no innovation, has no real raison d’etre, and is only popular because it became the plaything of a famous multi-billionaire during the past 12 months.

So naturally, as one might expect, the average citizen is already more familiar with Dogecoin than they are with Ethereum. That’s according to the results of a survey conducted by Harris Poll, in conjunction with CouponCabin, which asked over 2,000 adults in the United States to give their thoughts on cryptocurrencies.

According to the survey’s findings, 29% of respondents said they were familiar with Dogecoin, compared to just 21% who were familiar with Ethereum.

Of the total 2,063 respondents, 89% said they had already at least heard of cryptocurrency. Bitcoin was already known to a majority (71%) of respondents, with Dogecoin being the second most well-known coin.

Other digital assets that Americans claimed familiarity with included the stablecoin launched by Coinbase and Circle, USD Coin (USDC), of which 21% of respondents said they had knowledge. Some 18% of respondents said they were familiar with Litecoin (LTC), and 10% said Stellar (XLM) was known to them.

When asked whether they believed cryptocurrencies would become the future of money, 31% responded positively, and 30% said they thought of crypto as “innovative.” At the same time, 23% of respondents said they regarded cryptocurrency as a get-quick-rich scheme, while 19% characterized the technology as shady or nefarious. Almost half (44%) of respondents said they’d be open to receiving cryptocurrency as part of an online cashback rewards program.