Binance Research report indicates Bitcoin and altcoins are no longer correlated


Binance, the crypto exchange providing the largest trading volume in the world has recently published a study where they emphasize that the traditional correlation between Bitcoin’s price and the rest of the market represented by altcoins is no longer present.
The conclusion of the report from Binance Research should not come as a surprise for those following the cryptocurrency market who can simply observe that the recent Bitcoin Bull Run crashed the altcoins’ prices.
Every time Bitcoin’s price goes up, the popular altcoins such as Ethereum, Ripple or Litecoin don’t seem to follow like before to bring about the so-called ‘altcoin season’ that most altcoins’ holders were expecting. Even more, every time Bitcoin’s price retreats, altcoins’ prices seem to nosedive leaving investors in the dust.
It is true that cryptocurrencies that have been around for some time, such as Litecoin, seem to walk sometimes on their own paths under the influence of a particular occurrence, like Litecoin’s halvening event that will take place in August 2019.
But this is rather an exception and not a rule as we’ve been able to observe with Binance Coin in the first half of 2019. When you are backed by the most influential crypto exchange in the world and you are used for multiple purposes, including in the successful Binance Launchpad token sale offerings, it does help to be optimistic about Binance Coin’s future price evolution.
But why is this happening? Why is Bitcoin leaving altcoins behind?
First of all, as everybody can see, the latest Bitcoin Bull Run helped the king of cryptos recover almost all loses inflicted in 2018, while other popular altcoins are still struggling to come back to life.
When analyzing Bitcoin’s successful return into the market we can of course talk about the increasing number of institutional investors that approach the space with more and more Bitcoin-based investment products available for them.
At the same time, we can see that Bitcoin is about to touch 66% of the overall market cap, a level of domination we last time experienced in December 2017. Looking at the charts we can easily see that traders and investors are getting ready for the new Bull Run in sight and are moving their assets from altcoins to Bitcoin.
Finally, the much anticipated Bitcoin halving event from May 2020 is around the corner and, if we can learn any lesson from the previous events, we can see that Bitcoin’s price started to rise almost every time 1 year before halving.
Will Bitcoin’s hunger be satisfied with 66% of the market cap or is this the end of altcoins?

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