Bitcoin’s correlation with Ethereum falls below 70%, lowest level since 2021
According to Kaiko data, the 60-day rolling correlation between Bitcoin and Ethereum has fallen below 70% for the first time since the beginning of 2021, according to DeepChant TechFlow. According to The Block, this change occurred after the launch of a Bitcoin ETF in the United States, accompanied by expectations that a spot Ethereum ETF could be approved. In the correlation index between assets, 1 (or 100%) indicates complete positive correlation, meaning that asset prices move in the same direction by the same magnitude. Conversely, 0 (or 0%) indicates no correlation, while -1 (or -100%) indicates complete negative correlation, meaning that asset prices move in the opposite direction by the same magnitude. Therefore, the correlation between the prices of Bitcoin and Ethereum has dropped below 70%, meaning that the price trends of these two major cryptocurrencies are no longer synchronized as they were in the past few years.
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