Is there a correlation between the value of Ripple (XRP) and Bitcoin (BTC)?
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Price correlation, most likely, but technical analysis is probably outside the purview of this site.– Jimmy SongCommented Mar 3, 2015 at 15:36
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I agree about price correlation, but why would the question be offtopic? It's not "technical analysis" so much, as just a question of finding historical data and plugging them into the equation. It can easily be answered factually.– Murch ♦Commented Mar 3, 2015 at 16:50
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2 Answers
Bitcoin and Ripple's past 90 days prices somewhat correlated
Using price charts of the last 90 days in XRP/USD and BTC/USD, the daily prices of Ripple and Bitcoin appear to be somewhat correlated: Their correlation coefficient comes out as 0.741.
Correlations in Coingecko's Top Ten
I've proceeded to check the past 90 days correlations of the top ten cryptocurrencies as listed on Coingecko.com:
In the past ninety days:
- Litecoin and Bitshares had a correlation of 0.93, as had Litecoin and NXT.
- Bitcoin appears to be most correlated with Ripple and Litecoin, both 0.74.
- Bitcoin appears to be least correlated with Stellar, at -0.19
- The least correlation appears to be between Dogecoin and Monero at -0.05.
Procedure
All data was taken from Coingecko's last 90 days pricecharts on 2015-06-08. Therafter, I plugged them into LibreOffice, and ran Correl(A;B) on each pair.
In general, when bitcoin is rising, all the others cryptos do, and vice versa. You can say that bitcoin is leading the crypto in general, so any upthread in bitcoins rate usually leads to the raise of most of the alts
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2Could you please support that opinion with a reliable source or some numbers? So far it sounds like anecdotal evidence to me.– Murch ♦Commented Mar 9, 2015 at 22:19