Binance Research Says The Recent Turmoil Influenced Bitcoin’s Correlation With Market in Q1

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • Binance research released a report briefing the performance of Bitcoin during the first quarter of 2020 and its correlation equated with many traditional assets class following the latest global market downtime and especially driven by the coronavirus outbreak.
  • According to Binance Research, due to the COVID-19 pandemic and the global economic disorder, all asset prices were tumbled during the first quarter of 2020.
  • Average negative returns reduced the benefits recorded in the first month of 2020 in February. Large-cap cryptocurrencies had significant recorded high correlations this year.

Binance research released a report briefing the performance of Bitcoin during the first quarter of 2020, and its correlation equated with many traditional assets class following the latest global market downtime and especially driven by the coronavirus outbreak.

Bitcoin showed zero correlation with Gold

The exchange’s arm, Binance Research, found that during the first quarter of 2020, Bitcoin showed a reasonable positive correlation with US equity indexes and zero correlation with Gold. It was a fluctuating situation in the markets, which included the upsurge of Bitcoin above $10,000 and subsequently drop in global markets due to the coronavirus pandemic.

In the recent reports, Binance Research focused on how BTC and other crypto coins performed and correlated with each other during the first quarter of 2020 along with BTC performance relative to various traditional asset classes such as stock indexes, commodities, and others.

According to Binance Research, due to the COVID-19 pandemic and the global economic disorder, all asset prices were tumbled during the first quarter of 2020. In the first quarter, the Bitcoin price was lowered by -10%. On the other hand, the S&P500 shown a -19% return. This correlation was comparatively high (0.57), which is described by a similar form in day-to-day business returns.

However, some more in-depth observations have been underlined by Binance Research, which says by the end of the first quarter of 2020, Gold showed a null relationship with BTC. The price of gold rose by 8% during the quarter with some more growth observed during the second half of March.

Also, the prices of crude oil fell 66% during the quarter due to other factors, which include the failure of the Organization of the Petroleum Exporting Countries (OPEC) to apply further oil output cuts.  The Binance Research said that the crypto industry met with a significant increase during the most recent quarter.

Bitcoin’s double-digit swoon

Average negative returns reduced the benefits recorded in the first month of 2020 in February.  Moreover, looking at the value of Bitcoin, the price of Ethereum (ETH) stabilizes with a minor price increase of +3.07%, during the first quarter of 2020.

Adding to this large-cap cryptocurrencies had significant recorded high correlations this year. Bitcoin and Ethereum showed a correlation of 0.93 with a median correlation coefficient of around 0.81 among the other largest 15 crypto assets.

Between the general market clatter, some major cryptocurrencies such as LINK and XTZ displayed positive gains in the quarter, this may be due to the project-related news and other distinctive factors

We Recomaned

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Partners