Institutional cryptocurrency prime dealer SFOX’s index is now reading the digital currency market as “mildly bullish,” according to a report published on April 4.
In the course of preparing the report, the company collected data about price, volume and volatility from eight major exchanges in March in order to examine the worldwide performance of six leading coins: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Bitcoin SV (BSV), and Ethereum Classic (ETC).
The SFOX Multi-Factor Market Index reportedly indicates that the cryptocurrency market entered April as mildly bullish, with Bitcoin Cash, Ethereum, and Litecoin reporting remarkable volatility movements that were not connected to Bitcoin. The research team postulated that the market at large may be growing outside of Bitcoin.
In terms of Bitcoin’s 30-days price correlations to other coins, ETC was reportedly the least correlated to Bitcoin, with a correlation of 0.685, while the least correlated cryptocurrency pair was LTC and ETC, with a correlation of 0.453. A correlation of 1 is considered the strongest.
The report further notes that the correlation between BTC and ETC decreased from the beginning of March through March 20th, having a low positive correlation of 0.21.
Earlier this week, the founder and CEO of digital currency investment firm BKCM LLC, Brian Kelly said that the next Bitcoin target is going to be $6,000, with cryptocurrency markets finding their bottom. Kelly then explained:
“All indications that we have — whether it be fundamentals, technicals, the quantitative analysis we do — all suggest that we probably have at least started to put in the bottoming process. What’s interesting about this move is it’s happening on improving fundamentals and improving institutional sentiment.”