- VeChain has a low correlation to Bitcoin
- The VET/BTC pair offers excellent visualization of the above position
- VeChain gained massively against Bitcoin on July 8
VeChain News Today – VeChain’s correlation to the number one digital asset Bitcoin is relatively low. When compared to other top altcoins like Ethereum and Litecoin, VET’s correlation to BTC is relatively low. This is the conclusion drawn by the team at Coinpredictor. They claim that VeChain’s correlation to Bitcoin currently stands at 0.37.
When this is compared to the 0.68 for Ethereum and the 0.83 held by Litecoin, you’ll agree that VeChain’s correlation to Bitcoin is low. Based on their correlation analysis, the remarked that BTC and VET have a moderately positive relationship. Their correlation coefficient is 0.37. This coefficient was estimated using the price dynamics from the past 100-days of trade for both digital assets.
VeChain has a Low Correlation to Bitcoin
This value of the correlation given by the team at Coinpredictor can vary (from -1 to 1 where -1 is the strongest negative correlation and 1is the positive correlation that’s the strongest). A value of 0 shows that there’s no correlation. In VeChain’s case, its current value of 0.37 means that VET is not being affected by Bitcoin’s price movement very much when compared to how other altcoins would react.
One good way to validate VeChain’s relatively low correlation to Bitcoin can be seen after an analysis of the chart for the VET/BTC trading pair. If both digital assets had a high correlation (the chart would appear less exciting because), it would show that for every rise or dump of Bitcoin the price of VeChain would follow similarly. This will result in the value of VET against BTC fluctuating very much due to volatility.
VeChain Gained Massively Against Bitcoin on July 8
VeChain gained massive against Bitcoin on July 8 peaking at 240 Sats. On the said date, VeChain achieved a peak price point against the USD at $0.022. VeChain appears to be in the bullish territory based on the daily MACD pattern seen about to cross into a bullish area. Daily MFI is neutral at level 46 and is pointing to a second push higher in the cryptocurrency market. To sum it up, during the bullish periods, some altcoins normally begin to display different patterns from the rest of the pack.
In VeChain’s case, the digital asset appears to have a low correlation to Bitcoin. Especially when compared to other tokens. Additionally, a quick analysis of the VET/BTC trading chart shows that VeChain could be set for a fresh push up. As is always the case with most altcoins including VeChain, it may be wise for traders and investors use stop losses and low leverages to protect their capital.