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World’s largest cryptocurrency exchange in terms of trading volume revealed a new report on Price correlations among major cryptocurrencies. The correlation among the prominent cryptocurrencies increased against the U.S. dollar [USD] but fell in Bitcoin [BTC] terms.
The report from Binance reveals that different correlations between cryptoasset returns in BTC and USD terms from late 2017 to 2018, indicating the rise of stablecoin trading pairs and declining BTC pairs while highlighting other influencing factors.
The report was published as part of an investigation into price trends within crypto markets since 2017. Binance findings shows behavior among assets is diverging depending on whether returns are denominated in USD or BTC.
Within three months of 2019, USD returns from holdings were more correlated among cryptocurrencies than in 2017. The current conditions of BTC returns by contrast are less correlated than they were eighteen months ago.
Binance post cited reasons are the liquidity and market dominance that Bitcoin continues to show compared to other cryptocurrencies. The results from the report highlighted the recent situations within the cryptocurrency market. The stablecoins, which have taken over trading pairs which would once have been denominated in BTC. Over the past six months Binance itself has adopted bullish attitude on stablecoin assets, opting to add wide numbers of them.