Leading altcoins are making a decisive break from their traditional correlation with Bitcoin, new data from GNY.IO, a leading blockchain-based machine learning business, shows.
GNY.IO’s free AI-powered Range Report shows the decoupling from Bitcoin is gathering momentum with seven of 11 leading altcoins now having almost no relationship with the price of Bitcoin. Many have gone from near total correlation last year to a negative correlation now.
They include Binance coin, Cardano, Dogecoin, Polkadot, Matic, Litecoin and Avalanche. Only Ethereum, Ripple, Solana and Chainlink still have a close relationship with the price movements of Bitcoin.
By contrast last year all 11 demonstrated high correlations with the price of Bitcoin with correlation values of above 0.8. GNY says a correlation value of between 0.75 and 1 shows a strong relationship between the price movements of two assets while one between 0.5 and 0.75 indicates a moderate relationship and one between 0.25 and 0.5 indicates a weak one.
Anything below 0.25 indicates a negligible relationship.
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Traders believe altcoin trading volumes will increase
GNY’s global study with traders trading at least $5,000 a month on cryptocurrencies found nearly two out of three (64%) believe both trading volumes and demand for altcoins will increase as their prices become less correlated to Bitcoin.
Cosmas Wong, CEO at GNY said: “As many leading Altcoins become more established, they are becoming increasingly popular with crypto investors and traders. It is also clear that many are becoming less correlated with Bitcoin, which increases their level of attractiveness as it enables traders and investors to more easily diversify their portfolios.”
Traders can use this data to identify potential market inflection points and trend shifts, and allocate to assets that have yet to perform.
What is the GNY Range Report?
The GNY Range Report is a cutting-edge machine learning tool designed specifically to forecast the volatility of the 12 top cryptocurrencies. By leveraging multiple data points and advanced algorithms, the innovative platform empowers traders with accurate intel into potential price fluctuations, helping them make more informed trading decisions.
The GNY Range Report also uses Large Language Models, another exploding sector of AI, to help make the insights even more accessible. AI Readouts summarise the chart trends and provide easy to follow insights that are useful both for planning trades, but also improving overall chart legibility.
GNY.IO said that eventually users will be able to interact with the models to customise the information they want, set alerts and customise notifications.
With its user-friendly interface and intuitive design, the GNY Range Report caters to both professional traders and passionate enthusiasts. It is a prosumer product that combines the robustness required for in-depth analysis with the accessibility needed for traders at any level of expertise.
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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.
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