LBRY Block Explorer

LBRY Claims • why-do-cryptocurrencies-move-together

99a8590a27b5b9ed3bc35d98e2940c4d0d18295a

Published By
Created On
13 Jun 2021 14:53:42 UTC
Transaction ID
Cost
Safe for Work
Free
Yes
Why Do Cryptocurrencies Move Together?
In this video, I discuss why cryptocurrencies tend to all move up or down together on a daily basis-- i.e. why they are positively correlated.

There are two main reasons for this:

1) Large investors tend to trade baskets of cryptos, just as they do with stocks (stock indices). What this means is that they tend to be buying lots of cryptos at the same time, or selling lots of cryptos at the same time, usually on a market-cap weighted basis.

2) This has been exacerbated in recent years by central bank money printing, which leads to oscillations between "risk-on" and "risk-off" environments. This helps to explain why stocks and cryptos tend to move up or down together.

Shorter-term correlations mean nothing over long periods of time. Some companies and cryptos will succeed and take market share; some will fail and disappear.

I am most bullish on BTC and ETH.

Not investment advice! Consult a financial adviser.

Crypto daily price changes:
https://coinmarketcap.com/

Chart of BTC and ETH:
https://coinmetrics.io/charts/#assets=btc,eth_zoom=1569110400000,1600646400000

What is correlation?
https://www.displayr.com/what-is-correlation

Crypto rolling 90-day correlation:
https://coinmetrics.io/correlation-charts/#assets=btc-ltc,btc-eth,btc-xrp_period=90

Grayscale Digital Large Cap Fund:
https://grayscale.co/digital-large-cap/

Are Bitcoin and stocks correlated?
https://www.youtube.com/watch?v=pnPs7YKcLjY&ab_channel=TraderUniversity

Matthew Kratter is the author of the Amazon best-seller "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5

If you like my teaching style and would like to learn more about investing and trading stocks, options, and futures, be sure to check out my online courses here:
https://www.trader.university/join

Use this secret coupon code to get a discount: YT99

#Bitcoin
#Cryptocurrencies


Disclaimer
Neither Trader University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisers, registered investment advisers, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video or at www.Trader.University (henceforth, “the Site”) should be construed as such by you. This video and the Site should be used as educational tools only and are not replacements for professional investment advice. There is a high risk in trading.
...
https://www.youtube.com/watch?v=GgPE9Es2YXs
Author
Content Type
Unspecified
video/mp4
Language
English
Open in LBRY

More from the publisher

Controlling
VIDEO
5 STO
Controlling
VIDEO
TESLA
Controlling
VIDEO
TRADE
Controlling
VIDEO
TOXIC
Controlling
VIDEO
WHY D
Controlling
VIDEO
GOLD
Controlling
VIDEO
XRP A
Controlling
VIDEO
WHERE
Controlling
VIDEO
TOXIC