Correlation Between Bitcoin and Ethereum Surprised!

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As the first quarter of 2023 comes to an end bitcoin The correlation between Ethereum and Ethereum rose to very high levels of 97%.

As of March 31, BTC and ETH trading volumes on various exchanges show that the average daily trading volumes were $19.7 billion and $8.4 billion, respectively.

Koinfinans.com As we have reported, the fact that Bitcoin and Ethereum prices have been moving in correlation for the last few months can be attributed to several factors. The highlight, however, is that these coins are the most liquid in the field, with an active base that justifies their mega-value. The fact that these coins can be transferred quickly between exchanges without worrying about liquidity also attracts the attention of macro investors.

Bitcoin advocates argue that Bitcoin can be a “hedge” during a financial crisis. This situation surfaced again during the recent banking crisis in the USA. On the other hand, the loss of USDC’s 1 dollar fixed is one of the sectoral reasons that increase the interest in BTC.

on the other hand Ethereum It is also becoming relatively liquid and deflationary, which is a reason why some of its supporters say the local currency ETH will become “ultra-solid money” better than BTC and gold. Reason.

The correlation could continue to rise in the coming months as crypto gains mainstream adoption. Macro investors will most likely turn to Bitcoin and ETH and consider them as risky assets as they diversify their portfolios.

With the chairman of the United States Security and Exchange Commission (SEC) saying that Bitcoin is a commodity, and the Commodity Futures Trading Commission (CFTC) classifying ETH as a commodity in a lawsuit against Binance and its CEO, Changpeng Zhao. co-regulatory clarity may further increase this correlation.

However, it is not yet clear how Bitcoin prices will react before and after the Shanghai Upgrade of Ethereum in mid-April.

You can follow the current price action here.


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