Which cryptocurrencies are most closely correlated with the Dow Jones index?

1 answers

• Nov 30, 2021 · 3 years ago
  At BYDFi, we closely monitor the correlation between cryptocurrencies and the Dow Jones index. While Bitcoin is often seen as the cryptocurrency with the closest correlation to the Dow Jones index, it's important to consider other factors as well. Ethereum, for instance, has gained significant traction in the decentralized finance (DeFi) space and has shown some correlation with the Dow Jones index. Additionally, Ripple, with its focus on cross-border payments, has also exhibited a correlation with traditional financial markets. However, it's crucial to remember that correlation does not necessarily imply causation, and the cryptocurrency market is highly volatile. Therefore, it's advisable to diversify your investment portfolio and consult with a financial advisor before making any investment decisions.
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