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Binance report: Bitcoin dominance weakens BTC-altcoin correlations in Q2

Scott Thompson
At the time of writing, Bitcoin (BTC) is trading just below $9,530 after falling significantly following last week's mild recovery, which took BTC back above its 20-day EMA. Bitcoin fell from $10,000 in the week to as low as $9,000 during the weekend before powering back above $9,500 in the space of a few hours on Sunday. Will Bitcoin push higher this week? Or will we see more major retracements back to the $9,000 region and below? As you can see from the chart above, BTC has dropped down to its 20-day EMA, where price has bounced slightly. Still, it is quite close to its early July lows. What I expect to happen is for price to bounce between $9,000The post Latest Bitcoin price and analysis (BTC to USD) appeared first on Coin Rivet.

Bitcoin’s became less correlated with other cryptocurrencies in Q2 2019, according to a Binance Research report.

According to the 2019 Q2 Crypto-Correlations Review, the second quarter marked the third best quarter the crypto industry has seen since 2014 and the highest growth since 2017. During this period, Bitcoin’s price increased by 300%, pushing its market dominance to above 60% and marking new highs for the year. This played a part in the significant decrease in its correlation with other cryptoassets.

“Correlations declined between Bitcoin and altcoins, with a decrease in average correlation of -0.11. The overall market capitalisation rose by 139%, whereas altcoin aggregated market capitalisation (including stablecoins) increased by ‘just’ 71% over the same period,” according to Binance Research.

Cryptoassets with more important idiosyncratic factors (e.g. major news and events) exhibited relatively low average correlations with other cryptos. These include Binance Coin, which moved to its own native blockchain and benefited from various news and updates that increased market interest; Chainlink, which revealed collaborations with Google as well as Matic Network, and Bitcoin SV, which displayed unusual price fluctuations and was delisted from some major exchanges.

Other key findings

The decrease in crypto correlations was also seen in some Proof-Of-Work cryptoassets such as Bitcoin Cash, Dogecoin, Ethereum Classic, Bitcoin Gold, and more, which exhibited lower average correlations than before.

Privacy coins display higher than average correlations with eachother.

Similar functions (e.g. Ripple with Stellar Lumens) seem to lead to higher than average correlations between two cryptoassets.

Read the full report here.

The post Binance report: Bitcoin dominance weakens BTC-altcoin correlations in Q2 appeared first on Coin Rivet.