As evident from the above chart, the correlation between digital currencies and Bitcoin, the world's largest crypto currency, has been calculated, indicating significant and intriguing insights.
It's quite intuitive that all crypto currencies exhibit a positive correlation with Bitcoin. This is because Bitcoin serves as a crucial index and behavioral pattern in the digital currency market.
However, upon closer examination, with the passage of time and increased demand in the digital currency market, especially with the emergence of new digital currencies depicted in the image, the correlation or price behavior of these currencies becomes more aligned with Bitcoin.
In fact, this behavior is attributed to the maturity of these projects over time. Consequently, this study suggests that with the growing maturity of the digital currency market, particularly with the establishment of new projects, the correlation of these assets with Bitcoin will also grow proportionately. This likelihood remains significantly high in the coming years.
Nevertheless, it's essential to note that correlation does not imply causation or certainty in the behavior of two parameters towards each other. In reality, it's not feasible to generalize that in all cases, digital currencies will align with Bitcoin. Rather, the optimal conclusion from this study lies in understanding the importance of Bitcoin in the digital currency market, exerting increasingly influential effects on the market in each cycle compared to the previous one.
Written by Crazzyblockk