Investigating Cryptoasset Cycles: A look at changes in cryptoasset correlations based on market structure
KEY TAKEAWAYS:
📌 Price co-movement of cryptoassets is quite high; the nascency of the cryptoasset market and the weak pricing ability of its participants has likely contributed to this phenomenon.
📌 An estimated 7% of the cryptoassets are held by institutional investors, which is almost one-thirteenth of the institutional holdings proportion for the U.S. stock market.
📌 Higher turnover rates for cryptoassets (five times higher than that of the U.S. stock market) indicate that participants in the crypto asset industry could be more active or reactionary than in traditional markets.
📌 However, the “UTXO/Realized Cap” metric suggests that crypto-investors tend to "HODL" as prices drop, only becoming more active when prices recover.
📌 Extreme internal correlation among coins is often accompanied by a price “inflection point”.
📌 Having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the cryptomarket has already bottomed out.
Read more...
#BinanceResearch
KEY TAKEAWAYS:
📌 Price co-movement of cryptoassets is quite high; the nascency of the cryptoasset market and the weak pricing ability of its participants has likely contributed to this phenomenon.
📌 An estimated 7% of the cryptoassets are held by institutional investors, which is almost one-thirteenth of the institutional holdings proportion for the U.S. stock market.
📌 Higher turnover rates for cryptoassets (five times higher than that of the U.S. stock market) indicate that participants in the crypto asset industry could be more active or reactionary than in traditional markets.
📌 However, the “UTXO/Realized Cap” metric suggests that crypto-investors tend to "HODL" as prices drop, only becoming more active when prices recover.
📌 Extreme internal correlation among coins is often accompanied by a price “inflection point”.
📌 Having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the cryptomarket has already bottomed out.
Read more...
#BinanceResearch