The behavior of the crypto markets is obviously not fixed. We know for a fact that Bitcoin does suffer from Bipolar disorder and is quite a moody bitch in general.

Don’t be so moody BTC

In the previous part of this series, we tried to qualitatively describe the relationship between Altcoins and BTC. Also, we glossed over Beta and how it can be used as a measure to quantify the correlation.

However, it would be foolish to ignore the fact that there are periods, for example, of relatively high BTC volatility and there are periods of relatively low BTC volatility or as some people like to call it sideways movement. It might be prudent to quantify the investment risk in such a volatile market, however this task is made considerably more difficult by the fact that all the statistics I churn out can become useless — or worse — misleading.

In the analysis below, I have used the daily prices of 4 altcoins (Bitcoin Cash, Ethereum, Ripple and Litecoin) along with BTC. These daily prices were sourced from Coindesk: an excellent website for all things crypto. The closing prices pertain to the period: 01/11/2017 to 10/02/2018, so 510 data points were used in total.

Let’s start with the King: Bitcoin himself.

BITCOIN