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Patterns are beginning to emerge amid ongoing price fluctuations in the cryptocurrency market. There are signs of strong correlations between digital assets and traditional financial assets. In a mail In X, Mike McGlone, chief commodities strategist at Bloomberg Intelligence, highlighted the correlations between some of these assets.
Strong positive correlation
McGlone noted that Bitcoin (BTC) and Dogecoin (DOGE) has a strong positive correlation of 0.68. This indicates that Bitcoin price movement closely determines DOGE price movement. In broader market dynamics, coins rise and fall together due to correlation.
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McGlone's analysis seems to go well Bitcoin And Dogecoin are witnessing downward price movement as of this writing. Interestingly, the price decline began hours apart, with Bitcoin falling first, only for DOGE to follow the same path.
CoinMarketCap Data It shows that Bitcoin is trading at $92,873.61, down 3.04% over the past 24 hours. DOGE posted a slightly higher decline of 8.16% at $0.3214. Regardless of the difference in percentages, both are witnessing a rapid decline compared to what they started in January.
However, in rare cases, DOGE has broken the correlation with Bitcoin, where... I mentioned By U.Today.
Comparative analysis with traditional assets
McGlone also confirmed this correlation by comparing BTC to traditional assets such as the S&P 500. This positive correlation of 0.32 with BTC indicates a modest correlation with the stock market. When the S&P 500 rises or falls, Bitcoin tends to follow the same trend, but not as strongly as the BTC-DOGE dynamics.
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According to Maglon, the gold and US dollar indexes are 0.15 and -0.14 respectively. This confirms the weak relationship between Bitcoin and gold. A negative correlation with the US Dollar Index indicates that BTC is moving in the opposite direction to the value of the dollar.
When Bitcoin strengthens, the dollar weakens, and vice versa. Overall, the strongest correlation is currently seen in the broader cryptocurrency market, where BTC and DOGE are on a downward trajectory.
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