Looking at the recent relationship between the CIX (Crypto Index) and the IXIC (Nasdaq Composite Index) we see a similar path in the price box with the CIX exhibiting a more volatile downside skew than the IXIC.
To confirm this we move down to the second indicator which is our Correlation Coefficient measuring the correlation of the CIX price action against the IXIC (baseline) We see a strong relationship between the CIX and IXIC with (R) coming in at .914 and a strong central tendency around the mean as measured by the R^2 at .8377. Our P value of 0 tells us that sample size is sufficiently representative of its population and that our positive correlation between the CIX and the IXIC is indeed significant.
Moving down to our bottom indicator as a measurement of the relative volatility of the CIX in relation to the IXIC. The CIX (crypto index) throws off a high volatility measurement at 1.6 beta in relation to the IXIC (Nasdaq). In summary we can see that the CIX and the IXIC are highly correlated from a price trend up/down standpoint, with the CIX swinging +/-60% (1.6 beta) in the direction of the trend and in relation to the IXIC. So the answer to the question stated in the title is currently yes, the crypto market (CIX) is currently performing like a high beta Nasdaq (IXIC) trade and has done so over the course of the last 30 days. It is important to note that this relationship could easily break down during a sell off as price architecture would slacken in a lower liquidity environment such as the one we could be facing with a more hawkish FED posture and the potential for several more rate hikes looming on the horizon.
(The above charts and analysis are for educational purposes only and are not intended as financial advice.)
To confirm this we move down to the second indicator which is our Correlation Coefficient measuring the correlation of the CIX price action against the IXIC (baseline) We see a strong relationship between the CIX and IXIC with (R) coming in at .914 and a strong central tendency around the mean as measured by the R^2 at .8377. Our P value of 0 tells us that sample size is sufficiently representative of its population and that our positive correlation between the CIX and the IXIC is indeed significant.
Moving down to our bottom indicator as a measurement of the relative volatility of the CIX in relation to the IXIC. The CIX (crypto index) throws off a high volatility measurement at 1.6 beta in relation to the IXIC (Nasdaq). In summary we can see that the CIX and the IXIC are highly correlated from a price trend up/down standpoint, with the CIX swinging +/-60% (1.6 beta) in the direction of the trend and in relation to the IXIC. So the answer to the question stated in the title is currently yes, the crypto market (CIX) is currently performing like a high beta Nasdaq (IXIC) trade and has done so over the course of the last 30 days. It is important to note that this relationship could easily break down during a sell off as price architecture would slacken in a lower liquidity environment such as the one we could be facing with a more hawkish FED posture and the potential for several more rate hikes looming on the horizon.
(The above charts and analysis are for educational purposes only and are not intended as financial advice.)