Journalist<\/p>\n<\/div>\n
\nPosted: November 28, 2023 Bitcoin [BTC]<\/a> has been riding high on the enthusiasm surrounding potential spot ETF approvals over the last few months. The optimism resulted in a steady increase in institutional investments<\/a> into the king coin, according to digital asset manager Coinshares.<\/p>\n The world\u2019s largest digital asset has more than doubled<\/a> in value since the beginning of the year, leaving the horrors of the crypto winter well behind.<\/p>\n A closer examination revealed that the coin has been rock steady in 2023, unfazed by developments impacting other cryptos in the market.<\/p>\n In fact, even the latest Binance\/Changpeng Zhao (CZ) fiasco<\/a> failed to give a big scare to BTC. A similar story unfolded earlier in the year when the prized asset managed to stay resilient despite U.S. regulators\u2019 scrutiny of other altcoins.<\/p>\n According to AMBCrypto\u2019s analysis of CoinMarketCap\u2019s data, Bitcoin\u2019s market cap has expanded from 39% at the start of the year to 51% at the time of writing. At the same time, the market share of some popular coins like BNB<\/a> shrunk considerably.<\/p>\n Source: CoinMarketCap<\/p>\n<\/div>\n The reason lies in Bitcoin\u2019s increased decoupling from altcoins in 2023, as per a report by crypto market data provider Kaiko<\/a>. The de-correlation helped in boosting Bitcoin\u2019s image as a portfolio diversifier.<\/p>\n As evident from the graph below, major altcoins like the BNB, Ripple [XRP]<\/a>, and Solana [SOL]<\/a> were the most detached from the king coin.<\/p>\n Source: Kaiko<\/p>\n<\/div>\n While BNB\u2019s 60-day correlation with BTC plunged from 80% in 2022 to 60% in 2023, XRP tumbled 75% to 45%. On the other hand, Cardano [ADA]<\/a> and Dogecoin [DOGE]<\/a> still maintained a strong relationship with the king coin.<\/p>\n When an asset stops reacting strongly to the price action of other similar assets, it makes financial sense to include them in one\u2019s portfolio. Smart investors spread their investments across different cryptos, reducing their exposure to any one type of asset.<\/p>\n
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Bitcoin moves ahead unscathed<\/h4>\n
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<\/a><\/p>\nBitcoin detaches from the rest of the market<\/h4>\n
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<\/a><\/p>\nGood idea to buy Bitcoin?<\/h4>\n
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