Researchers find cryptocurrency signatures of maturity similar to equities market

1. Cryptocurrency Maturity Signatures: The article talks about how researchers have found several similar 'signatures of maturity' emerging in the cryptocurrency market similar to the equities market. This points towards the cryptocurrency market undergoing a significant transformation in recent years. The researchers have specifically identified two different maturity markers - first,a declining correlation between coins,and second,an improved market efficiency,meaning prices become less sensitive to events/news over time. These are crucial indicators of a more mature market that is capable of sustaining itself in the long run. 2. BTC and ETH Decoupling: The researchers noticed this change by tracking the Bitcoin and Ethereum correlation since 2017. It was observed that Ethereum's correlation with Bitcoin shifted from being very high to very low,pointing towards a decoupling of the two cryptocurrencies. Earlier,both cryptocurrencies were tightly correlated with each other,meaning their prices would move in the same direction. The shift indicates that over time,cryptocurrencies,like other assets,develop their unique features and begin to trade on their individual merits. The article emphasizes how it's essential for investors to be aware of these changing dynamics to make rational investment decisions. 3. Crypto Market Efficiency: Another remarkable finding by the researchers was about the market's efficiency. They concluded that the efficiency of the crypto market had improved significantly. This means that market prices have become more informed by the vast amount of info available to investors,and news/events impact prices less than before. Alongside this,the researchers have also identified that the underlying technology powering cryptocurrencies,called blockchain technology,has matured significantly as companies and governments have started investing in it. This suggests that blockchain-related projects and digital assets could provide real-world value in the future.

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