What are the most correlated currency pairs in the world of digital currencies?

3 answers

• Nai MikiuoJan 11, 2022 · 4 years ago
  The most correlated currency pairs in the world of digital currencies are often those that belong to the same blockchain platform. For example, Bitcoin and Bitcoin Cash, or Ethereum and Ethereum Classic, tend to have a high correlation because they share similar underlying technology and user base. This correlation can be attributed to the fact that changes in the overall sentiment towards a particular blockchain platform can affect the prices of all the currencies associated with it. So, if you're looking for highly correlated currency pairs, start by exploring those within the same blockchain ecosystem.
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• Bundgaard MarcussenJun 10, 2022 · 4 years ago
  When it comes to digital currencies, the most correlated currency pairs are often those that are pegged to the same fiat currency. For instance, stablecoins like Tether (USDT) and USD Coin (USDC) are designed to maintain a 1:1 ratio with the US dollar. As a result, their prices tend to move in tandem with each other. This correlation is driven by the fact that both stablecoins are backed by the same fiat currency reserve and are subject to similar market forces. So, if you're interested in trading highly correlated currency pairs, consider exploring stablecoins pegged to the same fiat currency.
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• AutomataNum4Oct 26, 2024 · a year ago
  According to a recent study conducted by BYDFi, the most correlated currency pairs in the world of digital currencies are Bitcoin and Litecoin. These two cryptocurrencies have a strong positive correlation, meaning that when the price of Bitcoin goes up, the price of Litecoin tends to follow suit. This correlation can be attributed to the fact that both Bitcoin and Litecoin are widely recognized and accepted as digital currencies, and their prices are influenced by similar market factors. So, if you're looking for highly correlated currency pairs, Bitcoin and Litecoin could be a good place to start.
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