After touching the recent lowest point at the end of September, overall prices of tokens in October brought back to the previous level with Chinese President Xi Jinping’s favorable comments on blockchain technology.

As shown below, at the end of September and October, simultaneous high-level volatility of overall markets moved asset prices up and down, which we passed this all together.


1. Two major tokens show coupling to all others

  • Very interesting to see, BSV and ETC are moving together with others, which was decoupling last month.
  • What we see a difference from the previous period, market price down, and this month, up!
  • Probably, two tokens’ relationships with other majors are an indicator of market movements.

2. ETH’s dominance lasts

  • ETH shows the highest connectedness to the overall market, a lasting phenomenon for the last three months.

3. Market volume is orchestrating through all token, with recent up and down

  • Previously, market volume was not showing any deep correlated move.
  • However, with the recent two incidents, September’s drop and October’s jump, clear “ensemble”.

I. Correlation of OKEx Major Tokens

Correlation of Oct 2019 (YTD) data, as shown above, the overall relationships with each other became slightly positive compared to the previous month.

  • As mentioned in the two previous reports, ETH is still more correlated to overall markets compared to BTC.
  • BSV is less connected to other major tokens still, compared to others which were observed also in the last report, and became more positive relatively, due to the price jump during the last week of Oct. We will see this further in detail.

II. Microscope on Correlations

  • No big changes, the market was calm after the 12% price drop of Bitcoin on September 25th.
  • Still no big shifts, slightly adjusting and moving in a circle.
  • Now there is a shift. With the Xi’s plan on blockchain technology for China, the price jumped up and became more correlated.
  • ETC, BSV has notable relationship change (positive) at the time of price back to the previous level.

1. Especially, BSV, which was showing less correlated to other major tokens, comes to the average level. (Here we put the correlation of same period from last month, which was under significant turbulence, price drop.)

2. ETC, which was moving less correlated to BTC during the turbulence of last month, now marching together with overall tokens. It seems moving back to the average level of price, correlation to others.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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