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Analysis shows major cryptocurrencies move with high correlation over twelve months

A market review highlights that the four largest crypto assets exhibited daily correlation coefficients between 0.82 and 0.90 over the past year.

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An examination of price data reveals that the four largest cryptocurrencies—Bitcoin, Ethereum, Solana, and XRP—moved closely together over the past twelve months, registering daily correlations between 0.82 and 0.90. This synchronised behaviour indicates that holding these four assets provides less diversification than the distinct asset count might suggest.

The analysis notes that portfolio structure depends on weighting and total wealth allocation rather than simply the list of assets held. Market capitalisation remains the standard metric for weighting, but applying it produces heavily concentrated holdings.

According to CoinGecko figures from October 2, the total crypto market was valued at approximately 2,559 billion euros. Bitcoin accounted for 58.75 percent, Ethereum for 11.29 percent, XRP for 3.20 percent, and Solana for 2.41 percent. When examining these four assets alone, their combined value reached roughly 1,936 billion euros, with Bitcoin representing 77.7 percent, Ethereum 14.9 percent, XRP 4.2 percent, and Solana 3.2 percent.

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