Which cryptocurrencies are most closely correlated with the performance of the MSCI World index?

3 answers

• Nov 28, 2021 · 3 years ago
  Cryptocurrencies that are most closely correlated with the performance of the MSCI World index tend to be those that have gained mainstream adoption and recognition. Bitcoin, being the largest and most well-known cryptocurrency, often exhibits a correlation with the global stock market. Other cryptocurrencies like Ethereum and Ripple also show some level of correlation due to their popularity and market capitalization. However, it's important to note that the correlation between cryptocurrencies and the MSCI World index can vary over time and is influenced by various factors such as market sentiment, regulatory developments, and macroeconomic conditions.
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• Nov 28, 2021 · 3 years ago
  When it comes to the correlation between cryptocurrencies and the MSCI World index, it's crucial to consider the specific time period and market conditions. While some cryptocurrencies may exhibit a strong correlation with the global stock market during certain periods, the correlation can weaken or even reverse in other periods. Factors such as market volatility, investor sentiment, and economic events can significantly impact the correlation between cryptocurrencies and the MSCI World index. Therefore, it's important for investors to conduct thorough research and analysis to understand the current correlation dynamics before making any investment decisions.
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• Nov 28, 2021 · 3 years ago
  According to a study conducted by BYDFi, a digital asset exchange, the cryptocurrencies that have shown the highest correlation with the performance of the MSCI World index are Bitcoin, Ethereum, and Litecoin. These cryptocurrencies have established themselves as the leading players in the market and have gained significant attention from institutional investors. The correlation between these cryptocurrencies and the MSCI World index can be attributed to the growing integration of digital assets into the global financial system. As more traditional investors enter the cryptocurrency market, the correlation between cryptocurrencies and traditional financial markets is expected to strengthen.
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