Crypto experts say that the price of Bitcoin (BTC) will hit the coveted $100,000 mark before the end of 2020, while others assume that in its early stages there will be a new bull run and some predict that the price will reach a new all-time high of $27,000 by summer.
Bitcoin (BTC) price reached a new peak of 2020 on Feb. 13, reaching $10,497 after an increase of 42 percent since the beginning of the year.
Along with the price rise of Bitcoin, altcoins have also soared. NEM and Tezos (XTZ) have reported impressive double-digit gains over the past week, raising the possibility that altcoins and Bitcoin bull times may be associated.
Altcoin Correlation With Bitcoin Price Upbeat
Bitcoin witnessed a strong bullish run from April 2019 to June 2019, delivering a return in excess of 200 percent and hitting $13,800 in June. 26, in 2019. Drawing the similarities between Bitcoin and the top 30 cryptocurrencies on the market today, we find that (58 per cent of cryptocurrencies show correlations that in such times are greater than 60 percent toward Bitcoin.
A correlation of zero percent indicates the currencies are not correlated in any way, while 100 percent means the currencies are absolutely correlated positively. Furthermore, a correlation of -100 percent means that the currencies are in complete inverse correlation.
The most popular Bitcoin-related currencies are Bitcoin Cash (BCH), Ether (ETH), Dash, Monero (XMR) and EOS with correlations between 74% and 82%. On the other hand, USD Coin (USDC) has the lowest of all currencies, with a negative relation (-4.3 percent), followed by HedgeTrade (HEDG) with a correlation of 13.3 percent.
During bullish altcoins cycles such as the one observed between December 2018 and March 2019, correlations between the top currencies and Bitcoin are higher in all cases except for USD Coin, which is marginally more negative than during the bullish era of Bitcoin (-7.8%).