Cryptocurrency Q&A
How is bitcoin USD beta calculated?
How is bitcoin USD beta calculated?
TaekwondoMaster
Sun Jul 14 2024
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7 answers
1953
Could you please elaborate on the methodology used to calculate the Bitcoin USD beta? As an investor, I'm particularly interested in understanding the factors that influence its determination. Is it based on historical price movements, correlations with other assets, or a combination of various metrics? Additionally, how often is this beta value recalculated, and what are the implications for investors who rely on this metric in their portfolio allocation decisions? A detailed explanation would greatly enhance my understanding of this critical financial indicator.
7 answers
Pietro
Tue Jul 16 2024
The beta for Bitcoin USD, benchmarked against the S&P 500 Index, has been calculated using a rolling 1-month time window of daily returns.
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CryptoEmpire
Tue Jul 16 2024
This rolling time window began on June 2nd, 2022, providing a dynamic and updated measure of Bitcoin's performance relative to the broader market.
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CryptoLord
Mon Jul 15 2024
The beta is a statistical measure that quantifies the relationship between the returns of Bitcoin and the returns of the S&P 500 Index.
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Daniele
Mon Jul 15 2024
In addition to Bitcoin, investors can also analyze other comparable assets, such as stocks, ETFs, and other cryptocurrencies, to gain a broader understanding of the market.
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lucas_emma_entrepreneur
Mon Jul 15 2024
By using a rolling time window, the beta captures how this relationship has evolved over the past month.
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