Today, we have a good example of the importance of correlations. As I noted before in this post, the Bitcoin price is correlated to the amount of unique Bitcoin addresses.
If we look at the Bitcoin addresses, it has hit a new low today, since the bursting of the Bitcoin bubble, which I covered here.
The Bitcoin price on the other hand has not made that new low yet as it would mean that Bitcoin should be going under $500/Bitcoin. But according to our correlation, this is bound to happen soon.
Let's see if it happens.
And by the way. If you think Bitcoin is the best cryptocurrency in the world, then look at Mr. Ripple. A currency I have never heard before and it almost overtook the Bitcoin market capitalization in begin December. All of the people saying that alternative cryptocurrencies don't hurt Bitcoin's price are completely wrong.