According to data provided by Kaiko, the correlation between Bitcoin and Ethereum price has dropped below 80% for the first time since November 2021.
Correlation Between Bitcoin Price and Ethereum Price Drops To 78%
According to Kaiko, the 30-day correlation between Bitcoin and Ethereum has dropped to around 78% this week. The correlation measures how closely the prices of two assets move together. When the correlation is low, it means that their prices move in different directions more often.
Bitcoin and Ethereum generally have a high correlation, meaning their prices tend to move in the same direction.
Last month, Coinbase analyzed the correlation between BTC and ETH earnings. The exchange concluded that this correlation has declined since mid-March as Bitcoin began to outperform other cryptocurrencies in the face of the US banking sector crisis and increased regulatory scrutiny over non-Bitcoin cryptocurrencies.
This means that they have become more independent of each other and less affected by each other's price movements. For example, BTC may benefit from its status as a store of value and a hedge against inflation, while ETH may be benefiting from its role as a platform for DApps and NFTs.
*Not investment advice.