It does appear that in the short term this could prove to be dire for eth as the benchmark cryptocurrency may soon see a notable decline. This correlation has grown in recent times despite many altcoins being able to break it. Ethereum and bitcoin have formed a striking 90 correlation to one another throughout the past couple of years.
Quick summary the short term correlation between ethereum and bitcoin is gradually dropping the drop could signal the end of a 3 year high correlation between b ethereum s eth correlation to bitcoin is gradually decreasing thebitcoindesk. Although ethereum is quite far behind in terms of market cap in terms of technology may argue that the altcoin is miles ahead. They are undoubtedly two of the market s most important crypto assets due to their dominance in the space.
The relationship between bitcoin and ethereum has always been an intriguing one. The last time this correlation dropped as it is now was in 2017 and before the crypto wide bull run that peaked between december 2017 and january 2018. The short term correlation between ethereum eth and bitcoin is experiencing a drop that could signal a return of a bull market across the board for all digital assets.
In a similar fashion ether s value with respect to bitcoin also reached a yearly high of 3 3 percent the metric s highest point since june 2019. From the attached charts it can be observed that bitcoin s 1 month correlation recently nosedived from 93 percent on 21 july to 58 percent on 2 august. The other part which is 53 76 covers all the other circumstances such as media events or politics.
If we take all the factors affecting the price of eth as 100 then the share of btc price among these factors will be 46 24. The knowledge of the correlation coefficient helps to calculate in percentage the influence of bitcoin over ethereum.
