What are the most correlated pairs in the cryptocurrency market?

3 answers

• Nov 25, 2021 · 3 years ago
  One of the most correlated pairs in the cryptocurrency market is Bitcoin and Ethereum. These two cryptocurrencies have a strong positive correlation, meaning that they tend to move in the same direction. When Bitcoin's price goes up, Ethereum's price usually follows suit, and vice versa. This correlation is due to the fact that both Bitcoin and Ethereum are considered to be the leading cryptocurrencies and are often used as a benchmark for the overall market sentiment. So, if you're looking for a correlated pair to watch, Bitcoin and Ethereum would be a good choice.
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• Nov 25, 2021 · 3 years ago
  Another highly correlated pair in the cryptocurrency market is Litecoin and Bitcoin Cash. These two cryptocurrencies also have a positive correlation, meaning that they tend to move together. When Bitcoin's price goes up, Litecoin and Bitcoin Cash usually experience similar price movements. This correlation can be attributed to the fact that Litecoin and Bitcoin Cash are both derived from Bitcoin and share similar characteristics. Therefore, if you're interested in trading correlated pairs, keeping an eye on Litecoin and Bitcoin Cash could be beneficial.
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• Nov 25, 2021 · 3 years ago
  According to BYDFi, a popular cryptocurrency exchange, one of the most correlated pairs in the market is Ripple and Stellar. These two cryptocurrencies have a strong positive correlation, meaning that they tend to move in sync. When Ripple's price goes up, Stellar's price tends to follow, and vice versa. This correlation can be attributed to the fact that both Ripple and Stellar are designed for fast and low-cost cross-border transactions. As a result, they often attract similar investors and traders, leading to a high correlation between their prices. So, if you're looking for a correlated pair to trade, Ripple and Stellar could be worth considering.
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