Bitcoin and the Japanese yen are moving together like never before

Source: CryptoNewsNet Original Title: Bitcoin and the Japanese yen are moving together like never before Original Link: https://cryptonews.net/news/bitcoin/32237489/ Bitcoin traders may want to add the Japanese yen (JPY) to their list of related markets, moving beyond the dollar index, as the connection between the cryptocurrency and the yen has hit a record high over the last 90 days.

The 90-day correlation coefficient between BTC and JPY index has risen to 0.86, the highest ever. This high correlation means the two assets have been moving in the same direction so tightly that 73% of BTC’s price swings over the past 90 days mirror moves in the yen. The 73% figure – known as the coefficient of determination – comes from squaring the correlation coefficient and shows a model’s “goodness of fit” as an intuitive percentage.

The JPY Index is a currency index contract for difference (CFD) that measures the Japanese Yen’s strength against a basket of four major currencies: EUR, USD, AUD, and NZD.