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Major tokens – interesting price behaviors and figures
Bitcoin’s price drastically dropped 12% on September 25th. At the same time, the vast majority of digital assets recorded significant losses. In this analytical research report, we performed a correlation analysis of traded tokens using the method in the to find out how the market was affected during Bitcoin’s rough slump.
1. Two major tokens showed a lesser degree of correlation than the others.
- BSV and ETC were not affected as much as the other tokens
- In particular, ETC price moved independently amid the strong bearish momentum
2. ETH lost its dominance during the massive turbulence.
- In line with our previous research result, ETH shows a higher overall market connectedness
- BTC price dominance remains higher than that of ETH
3. OKB is getting more integrated into the market
I. Correlation of Major Tokens
As shown above, the overall trend of those 10 major tokens is highly correlated to each other.
- As mentioned in the , ETH is more correlated to other tokens compared to BTC. Interestingly, it is noticeable that EOS, BCH, LTC, TRX are getting more correlated to BTC as well.
- BSV is less connected to other major tokens.
To see how much the market’s connectedness has been changed in September, we compared the price movement during a short-term period.
II. Microscope on Correlations
- As shown above, BSV is the least correlated token among all major tokens and is now decoupling further.
- Before the drastic price fall, there were no dominant correlation changes.
- The price drop happened during the 4th week of September. We examined how the market behaved during the price turbulence.
- BTC’s market relationship to all other major markets became more correlated.
- In particular, ETH stopped its independent price move and became more correlated during that time.
- Despite the price drop of ETC, its price movements are less correlated to BTC and others.
- OKB moved altogether with the major tokens during that time.
The overall market followed the bearish momentum triggered by the dramatic Bitcoin price slump. This research reveals interesting price behaviors and figures on the major tokens during that time.
Although Ethereum (ETH) is reaching a wider application and has generated a lot anticipation for Ethereum 2.0, it is obvious that its price movements are still highly correlated to Bitcoin. On the other hand, the price of Ethereum Classic (ETC) moves with a higher degree of independence.
This post originally appeared on Medium. Read more.
Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
OKEx is a world-leading digital asset exchange headquartered in Malta, offering comprehensive digital assets trading services including token trading, futures trading, perpetual swap trading and index tracker to global traders with blockchain technology. Currently, the exchange offers over 400 token and futures trading pairs enabling users to optimize their strategies.
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