Cryptocurrencies' Joint Dynamics Revealed: Nonlinear Relationships Impact Trading Strategies.
The article explores how different cryptocurrencies are connected and influence each other over time. By using a special mathematical model, the researchers found that these currencies are linked in a specific way, with four main connections. They also discovered that all cryptocurrencies are affected by these connections. During a period when cryptocurrency values were very high, the connections between them became even stronger. The researchers also tested a trading strategy based on these connections, which worked well when tested with historical data but may not work as well in the future.