PiCK
[Analysis] "Altcoins highly correlated with small-cap stocks...long-term trend positive"
Summary
- Altcoin market and the U.S. small-cap Russell 2000 index have had an annual correlation consistently around 0.75.
- Delphi Digital emphasized that the two markets are exposed to the same liquidity supply factors and risk appetite.
- They said that if the macro environment gradually eases and the Russell 2000 continues its breakout trend, it would have a positive effect on altcoin market capitalization.
An analysis has found that the altcoin market shows a high correlation with U.S. small-cap stocks.
On the 5th (local time), Delphi Digital said that the annual correlation between the 'Total3' chart, which represents the market capitalization of virtual assets excluding Bitcoin and Ethereum, and the Russell 2000 index, which focuses on U.S. small-cap stocks, has consistently remained around 0.75 since the beginning of last year.
Delphi Digital explained, "This level is because both markets are exposed to the same liquidity supply factors and risk appetite." In particular, they said that synchronization between the two markets has become more pronounced in short-term indicators.
They judged the long-term trend relatively positively. Delphi Digital forecasted, "If the macro environment gradually eases and the Russell 2000 continues its breakout trend, it would have a positive impact on Total3 as well."
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀
