So Is There a Correlation Between Bitcoin and Stock Market? Yes, But No

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No matter litecoin and bitcoin correlation markets you choose, every proper litecoin and bitcoin correlation strategy involves "the hedge. Thus, hedging helps mitigate volatility that might occur in the primary investment. This article originally appeared on Litecoin and bitcoin correlation The Street -- https: One of the most common hedges for stock market investors is gold. Typically, as the equity markets rise, investors see little need for safe-haven assets like gold and silver.

But if equities falter, a rush to safety occurs. Gold often soaks up this capital outflow, which makes it an ideal hedge against the benchmark financial indices. But what about the cryptocurrency markets? Such vehicles are often considered a hedge against both traditional investments litecoin and bitcoin correlation index ETFs, and standard safe-haven assets. But what hedges popular blockchain currencies like bitcoin or ethereum? The answer is litecoin!

For the most part, litecoin and bitcoin correlation coins have a strong, direct correlation with bitcoin. This simply means that as bitcoin rises, so too does other cryptocurrency assets. When bitcoin falls, it tends to take down other cryptos. And no matter how many times alternative offerings like ethereum attempt to "de-lever" themselves from bitcoin, the hard numbers don't lie. For example, ethereum has a Popular altcoins Steem and Dash are even more directly correlated at Essentially, whenever bitcoin experiences any choppiness or volatility, many other cryptocurrency assets follow litecoin and bitcoin correlation.

This is particularly unfortunate when bitcoin runs into its own unique, fundamental challenges. For example, the scaling issue which threatened a softfork was a bitcoin-centric problem. Yet it negatively impacted so many cryptos that had nothing to do with scalability. A notable exception is litecoin. It may respond to the king of cryptos' movements, or it may not. As we have seen throughout June and most of July, litecoin is independent of bitcoin.

Litecoin and bitcoin correlation those seeking a hedge within the blockchain markets, litecoin is an astute choice. While other coins were tanking under a softfork threat that didn't directly involve them, litecoin trading remained comparatively robust.

Thank you for sharing this post. I'm a big Litecoin fan. Not only do I own litecoin in my crypto portfolio, I am also mining litecoin to hedge against any unforeseen bitcoin or eth conditions. You have a point: Litecoin price is relatively independent of Bitcoin price compared to other cryptos and it has its own upside potential.

Ideally, when choosing a hedge you would actually want something with a negative correlation to bitcoin price. Thus, while I agree that if you're looking for a hedge within the blockchain market, Litecoin may be one of the better options, currently traditional currencies are probably still the safer option or currency-based tokens, if you want the best of both worlds and are litecoin and bitcoin correlation to take a slightly bigger risk. But if you wanted to stay within the cryptocurrency markets, I think litecoin gives you the best shot among the majors.

Further research may or may not make that point stronger, as I'm admittedly only looking at trailing month I will keep you all posted! Thanks for sharing and you got my vote: Thanks, great information to consider. Interesting, is there any known reason to the reduced risk of litecoin correlation to Bitcoin?

Not that I know off-hand. I'll have to explore other metrics to see if I can narrow down an explanation. My guess is more robust sentiment and much more favorable transaction fees. Good to see I'm not the only one who thinks like this. Buy and hold for the upcoming 3 years and the blockchain market will find it's way. I was researching a way to find more info about the current cryptocoins on the market.

But I have mined some because was easy to do on simple PC. I was not surprised that price is not going up in begin but today I see Litecoin as competitor to Bitcoin. Yup, Ripple surprised me as well. It's an area where I will dig deeper I've been wondering what litecoin and bitcoin correlation might be a good hedge. But looks like LTC has weathered the storm and is continuing to move forward. I like LTC in that it was the first to adopt Segwit and it has a good team.

Appreciate your information here. Looks like I need to give LTC one more look! It gives you a nice hedging platform within the cryptocurrency markets! Litecoin is the Perfect Cryptocurrency Hedge!

Moving forward, investors should consider this "de-levered" attribute of litecoin. It's a perfect risk mitigation vehicle, and better yet, it has its own tremendous upside potential! Authors get paid when people like you upvote their post. If it was possible to resteem comments, I would resteem yours! Folks, this is how you properly debate!! Thanks for your litecoin and bitcoin correlation reply! Looking forward to your follow-up! Litecoin and bitcoin correlation knows I can use as many votes litecoin and bitcoin correlation I can get!

Great article, I found it very informative. Keep up the hard work. I'd include Monero too:

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