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RISK · BTC BETA

BTC Beta in Altcoin Positions: A Worked Crypto Example With Fees Included

Most altcoins move more than BTC when BTC moves. Their beta converts an altcoin position into BTC-equivalent exposure.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

Beta measures how much an altcoin tends to move per 1% BTC move. A $20,000 long in an alt with beta 1.6 carries roughly $32,000 of BTC-equivalent exposure. Hedging with a $32,000 BTC short would offset the BTC-driven part: if BTC falls 5%, the alt's expected move is −8% (−$1,600) and the hedge gains $1,600, leaving fees (≈ $32 for the hedge round trip) and the alt-specific move. Beta is estimated from history and unstable; re-estimate it and size the hedge with that uncertainty in mind.

Worked example

StepValue
Alt position$20,000
Beta to BTC1.6 (estimated)
BTC-equivalent exposure$32,000
HedgeShort $32,000 BTC
Hedge fees (0.05% × 2)≈ $32
BTC −5%: alt expected−$1,600
BTC −5%: hedge+$1,600
BTC −5% scenario ($)BTC −5% scenario ($): Alt (beta 1.6) -1,600 $; BTC hedge +1,600 $; Net before fees +0 $.BTC −5% SCENARIO ($)Alt (beta 1.6)$-1,600BTC hedge$+1,600Net before fees$+0
Only the BTC-driven part is offset. Original ChartsPod editorial graphic.

Beta's limits

Beta changes with market regime and window length; a 30-day beta and a 180-day beta can differ widely. The alt-specific (idiosyncratic) move remains unhedged.

Beta checkBeta check: Window length; Return interval; Re-estimate often; Hedge fees and funding; Residual risk named.BETA CHECKWindow lengthReturn intervalRe-estimate oftenHedge fees and fundingResidual risk named
A hedge built on an estimate. Original ChartsPod editorial graphic.

Conclusion

Related: Correlated Altcoin Exposure: A Worked Crypto Example With Fees Included, Portfolio Heat: A Worked Crypto Example With Fees Included.

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Beta measures how much an altcoin tends to move per 1% BTC move.

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Questions readers ask

What is BTC beta?

How much an alt moves per 1% BTC move.

How do I hedge it?

Short BTC equal to beta × position.

Is beta stable?

No; re-estimate it.

Sources and methodology

Arithmetic uses standard sizing formulas. Fee rates (0.05% taker, 0.02% maker), slippage and funding values are illustrative; check your venue's schedule. Liquidation figures are simplified approximations; exchanges calculate them with their own maintenance-margin rules (see Bybit's documentation).

  1. Bybit: Liquidation process — mark price and margin modes.
  2. ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.