Understanding BTC Correlation
True BTC correlation needs a price-series comparison against Bitcoin. Our component approximates it from a coin's own 7-day move — here is the difference.
What is BTC Correlation?
BTC Correlation measures the statistical relationship between an altcoin's price movement and Bitcoin's. A correlation of 1.0 means they move identically; 0.0 means completely independent; -1.0 means opposite.
Why It Matters
If every coin in your portfolio is highly correlated with Bitcoin, you have no real diversification. Coins with lower BTC correlation provide genuine portfolio diversification and may outperform during altcoin seasons.
How We Use It
Carries 4% of the Value Score. Important: we do not compute a statistical correlation against Bitcoin's price series. The component scores the magnitude of a coin's own 7-day move, on the assumption that a coin moving far more than the market is trading on its own drivers. That is a rough stand-in — a coin can move sharply and still be highly correlated with BTC. It sits in the price-action group (12% combined with Sentiment and Momentum).
Current Top 5 Coins by BTC Correlation Proxy
How our algorithm currently scores the leading crypto assets on the "BTC Correlation Proxy" component. Higher = stronger undervaluation signal on this single dimension.
Worked Example
NEAR Protocol (NEAR) leads with a BTC Correlation Proxy value of 55/100. On this single dimension, NEAR Protocol currently shows a neutral signal. Click NEAR Protocol above to see the full score breakdown across all 10 metrics.