The top 5 cryptocurrencies with the strongest positive correlations to Bitcoin (monthly data):
Ethereum (ETH): Correlation coefficient = 0.853
Cardano (ADA): Correlation coefficient = 0.792
Chainlink (LINK): Correlation coefficient = 0.781
Binance Coin (BNB): Correlation coefficient = 0.764
Tether (USDT): Correlation coefficient = 0.751
Regression Analysis:
The linear regression models for each cryptocurrency show varying degrees of alignment with Bitcoin's price movements.
Ethereum and Cardano closely mirror Bitcoin's trajectory, with R-squared values exceeding 0.7.
Chainlink and Binance Coin exhibit moderate alignment, with R-squared values around 0.6.
Tether, due to its stablecoin nature, has a weaker correlation and a lower R-squared value.
Pattern Recognition:
Time series analysis revealed recurring patterns in price movements, suggesting potential leading or lagging indicators.
Ethereum and Cardano tend to move slightly ahead of Bitcoin during significant upswings.
#Chainlink and Binance Coin often follow Bitcoin's lead with a minor delay.
Consider this when BTC is rising or falling
$BTC $BNB$ADA
