A comparison between the variations of the altcoins and bitcoin in the last year, shows that the correlation they have with the behavior of bitcoin has grown significantly, even though the dominance of the BTC has dropped significantly in relation to the rest of the altcoins. These studies serve to reinforce the hypothesis that the BTC is the market marker of cryptocurrencies.
Recently, a data scientist, Twitter user, offered a simple way to appreciate the correlation between bitcoin variations and altcoins. From the Twitter account @Cryptokita, the correlation between the movement of bitcoin and that of the first 75 altcoins by market capitalization during 90 days is shown in an animated chart.
In animation, each point represents an altcoin, which varies in the inverse correlation range (-1), and full correlation (1). A negative correlation is rarely observed (red dot). It is observed at the beginning that the correlation of the altcoins with the BTC grows from positive values, lower than 0.5 and progressively increases, until most of the altcoins end up in values very close to unity.
Another demonstration of how the correlation between the BTC and the altcoins increases is offered by the site Cointrading.ninja, which places the BTC and six more currencies on a double entry table and offers the correlations in the last 12 months, 6 months, 3 months, 30 days and 7 days. Less altcoins are included than in the video, but you can change the coins, and even measure the variations of any group of coins against the variation of another.
The correlation appears in numbers but also in colors: from red (-1), pink (less than zero), white (there is no correlation) and gradations of green as the correlation approaches 1. We offer the graph of a year and that of 30 days ago, which shows an intensification of green (more correlation).