A very correlated crypto market

Correlations in the crypto markets are nearing all-time highs as both bitcoin’s correlation to ether, and the broad crypto market, has seen a steady rise over the last few months.
Source: Tradingview

The 90-day correlations in the crypto market are approaching the highs from the bear market of 2018 and 2019. This paints a picture of an overall risk-averse sentiment in the market.

In the summer of 2020, the correlation was headed downwards, caused by bitcoin strength compared to alts. The correlation bottomed on Jan 9th 2021, before it grew as altcoins began moving more in line with bitcoin.

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