You reduce some time on the Addicted to Ethereum on and on bitcoin. Meanwhile it is Bitcoin-Ether Correlation Drops Below 80%. This is the lowest level in almost 2 years. Due to the falling correlation, the prices of the two cryptocurrencies no longer move parallel to each other.
Bitcoin and Ether no longer rise and fall together
In the past, the price of Bitcoin and Ether have risen and fallen together. But that is no longer the case. It happens more and more often that one of the cryptocurrencies increases in value and the other falls. This shows that the second largest cryptocurrency is becoming much more independent of Bitcoin.
If the rise or fall of bitcoin prices no longer affects other cryptocurrencies as before, this also means that sooner or later other cryptocurrencies will become independent of bitcoin. This represents great opportunities for new cryptocurrencies.
The well-known data provider Kaito has evaluated the current figures. The rolling correlation of #BTC with #ETH It has been since mid-March from 96% to 77% fell. This is the lowest level since November 2021.
However, ETH has lost momentum since the Shapella upgrade, falling nearly 14% while BTC is down around 11%. Shapella’s update has a big impact on Ethereum as it relates to the transition to Proof of Stake (PoS) completed and at the same time bettors can cash out their blocked ether.
#BTCand a rolling correlation with #ETH has weakened from 96% to 77% since mid-March – the lowest level since November 2021. ETH has lost momentum since the Shapella upgrade, falling almost 14% and BTC is down about 11%. pic.twitter.com/0wgNxqNjwj
— Kaiko (@KaikoData) May 15, 2023
Coinbase comes to the same conclusion and sees Bitcoin as having an advantage
The crypto exchange Coinbase has also examined the prices of Bitcoin and ether as well as the correlation with each other over the past few months and sees clear advantages for Bitcoin. It seems worth buying Bitcoin again.
If historical correlation data is a reliable indicator, #Bitcointhe recent positive correlation with the S&P 500 may be temporary: https://t.co/2A1IV0eT3Y
— Coinbase 🛡️ (@coinbase) March 19, 2020
In his analysis, the crypto exchange concludes that the turbulence in the US banking world is an advantage for Bitcoin. In addition, US authorities are increasingly tightening controls against other cryptocurrencies, which of course strengthens confidence in Bitcoin.
According to Coinbase research, the falling correlation has accelerated especially after the Shapella upgrade. Although there was no ether sale-once, the price of the cryptocurrency has not risen since then, but it has fallen even more significantly than the price of Bitcoin.
Bitcoin and Ethereum increased significantly in 2023. although it is for Bitcoin over 60% up went, yes Ethereum anyway Gained 50% in value. This bodes well for the entire crypto market and other promising cryptocurrencies.
Cryptocurrencies with potential in 2023
Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.