Crypto market returns to high correlation as all indices track bitcoin closely


Data shows that the crypto market has become highly correlated again over the past week as all indices take off after bitcoin.

All the market cap weighted crypto indices have been going together lately

According to Arcane Research’s latest weekly report, the 30-day ETH-BTC correlation is now valued at 0.95.

To assess the performance of different parts of the overall market, coins are categorized into “crypto indices”. The criterion for placing assets in the index is using market capitalization.

“Market capitalization” here simply refers to a measure of the total value of the entire circulating supply of a cryptocurrency.

There are three main categories of indexes: ‘Large Cap’, ‘Mid Cap’ and ‘Small Cap’. As their name suggests, these indices look at how coins of various sizes are doing right now.

Here’s a chart showing how each of these altcoin indices has performed against bitcoin over the past month:

Small caps appear to be the worst performers recently Source: Arcane Research’s Ahead of the Curve – Nov 22

As you can see in the chart above, the market cap weighted indices didn’t diverge much over the past month, but they tracked each other very closely, especially over the past week.

Both bitcoin and mid caps are currently in the red at exactly 18% over the last 30 days, while large caps have also performed only minimally as the index’s return is currently at 19%.

Small caps have taken a much bigger hit than the rest of the pack as the index is 23% underwater over this period.

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As evidenced by the data, assets in the crypto market have been highly correlated lately.

The report also states that the 30-day rolling correlation between Bitcoin and Ethereum has now reached a value of 0.95. The maximum value of the correlation metric can be 1, which means that these two cryptos now run almost perfectly side by side.

Since the year 2016, the BTC-ETH correlation has only been seen at such a high level for 3% of the total time.

bitcoin price

At the time of writing, bitcoin price is hovering around $16.4k, down 1% over the past week. Below is a chart that shows the recent trend in the price of crypto.

The coin appears to have recovered somewhat from falling below $16k in recent days. Source: BTCUSD on TradingView, Featured Image by Art Rachen on,, Arcane Research Chart




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