The Correlation Between Bitcoin And Ethereum: Current Details
The beginning of 2020 was a powerful leap for most cryptocurrencies, including Ethereum. Especially intense signs of the rally appeared in the first two months of the year, so many cryptanalysts made big bets on a grand breakthrough in 2020 of key crypto assets. But the massive collapse in the cryptocurrency market in May significantly adjusted the market condition of many cryptocurrencies.
Although the collapse did not pass by Ethereum, the leading altcoin was able to demonstrate its viability and resistance to market fluctuations. Ethereum was able to stay in the price region around $200.
Today, some changes have been recorded in the issue of the dominance of digital assets in the cryptocurrency market. In particular, Bitcoin lost ground: the dominance of the flagship cryptocurrency fell by 10% to 55.6% over the past week.
If we evaluate the dominance of Ethereum, for this indicator altcoin bounced down by 5%. But despite the downward movement, Ethereum has shown greater strength in the macroeconomic area than Bitcoin, which is now trading below a key support level of $9,000. At the same time, Ethereum was able to maintain a position above the support level of $190.
ETH-BTC volatility spread reaches 6-month low
It should be noted that the level of volatility between the two leading cryptocurrencies has significantly decreased. According to the latest Skew data, the monthly spread of realized volatility of the Ethereum-Bitcoin pair was -3.5%. This indicator is correlated with data of 6 months ago.
An anti-record on the level of volatility between two crypto assets was recorded relatively recently. Before the collapse in March 2020, the ETH-BTC volatility level reached 21%, which was triggered by an unexpected collapse in prices on the cryptocurrency market and the prevailing panic within the crypto community.
Today, the situation in the cryptocurrency market has radically changed towards stabilization. Although Ethereum still looks more stable than the flagship cryptocurrency, the correlation between these crypto assets is increasing. Today, the correlation level of ETH-BTC is 88%.
Ethereum may be building up strength for further bullish growth. Despite the delay in the launch of Ethereum 2.0, investors and traders are in no hurry to discard the second cryptocurrency by market capitalization and place big bets on it.