Cryptocurrency Unsurprisingly, as the sluggish trend continues in the altcoins the vast majority behave according to Bitcoin’s movements. alright bitcoin Which cryptocurrencies are most and least affected by the price movements?
The analyst said that the purpose of doing this work is to give importance to diversity when creating a portfolio. According to the analyst, users who want diversity in the cryptocurrency basket may turn to altcoins that have little or opposite correlation with BTC.
Altcoins Most Correlated with Bitcoin
Examining the price movements since 2019, the analyst stated that the crypto currency that shows the most correlation with the movements of the Bitcoin price is Litecoin (LTC). However, other cryptocurrencies that correlated the most with the BTC price included Ethereum (ETH), Polkadot (DOT), VeChain (VET) and Binance Coin (BNB) in the top five.
Altcoins with the Least Correlation with BTC
However, newly released altcoins were also included in the analyst’s list. Since the data of these coins is more limited compared to other coins, their correlation with BTC may not have been measured as accurately as others. Dogecoin (DOGE), The Sandbox, Harmony (ONE), Solan (SOL), and Decentraland (MANA) were among the five cryptocurrencies least affected by the BTC price in the analyst’s list, with correlation values from lowest to highest.
In addition, the analyst reported that Ethereum has been increasingly affected by Bitcoin’s movements in recent months, and the price fluctuations of these two cryptocurrencies have become more similar.
*Not investment advice.