Bitcoin is not crypto. But based on correlations crypto is still Bitcoin.
Bitcoin correlation report, October 2023
Correlation isn't causation. Still, there is a hierarchy in the correlations. Movements at the top of hierarchy are likely to cause effect down the chain. The opposite is less likely.
Macro heavy assets or larger assets are on top. And the smaller you go, the more niche it gets, the lower you end up on that hierarchy.
Bitcoin isn't at the bottom, but it isn't particularly high either. But the rest of crypto is all downstream from Bitcoin...
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Bitcoin correlation report, October 2023
Every month in the Bitcoin’s correlation report we examine a set of correlations and trend similarity metrics to understand what is driving Bitcoin’s price action and what you need to pay attention to. This is our report for October 2023.
Takeaway
Bitcoin is not crypto. But crypto is following Bitcoin’s trend more often than not. From a strategic perspective that means whatever big trend you bet on in crypto is a bet on Bitcoin with some extra leverage. Something good to remember.
But the real news is that the stock market is getting correlated to Bitcoin… again. For now this correlation is not very strong. However the change over the past three months is significant.
The most likely reason for this new trend is that stocks can no longer escape the reality of macro. But that’s something to keep an eye on.
Crypto is Bitcoin
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