Ethereum‘s (ETH) price is particularly influenced by fluctuations in the wider financial market, more so than other cryptocurrencies.
Based on new information from IntoTheBlock, the connection between Ethereum (ETH) and various traditional market indicators has grown stronger than that of Bitcoin (BTC) with the same markers.
Bitcoin, Ethereum, and Stocks
The statistics from the company reveal a strong connection, with a correlation coefficient of 0.7, between the price movements of Ethereum (ETH) and the DAX index. This index represents the 40 largest and most actively traded German companies on the Frankfurt Stock Exchange. In comparison, Bitcoin’s (BTC) correlation is slightly lower at 0.63.
A more notable difference exists between the S&P 500 and Nasdaq 100 in their correlation with Ethereum (ETH) compared to Bitcoin. Specifically, ETH’s correlation coefficients are 0.77 for the S&P 500 and 0.7 for the Nasdaq 100, while Bitcoin’s correlations stand at 0.56 for the S&P 500 and 0.44 for the Nasdaq 100.
At present, the relationships between the US Dollar Index and Bitcoin as well as Ethereum are inverse. The correlation between Ethereum and the U.S. dollar index is stronger than that of Bitcoin, with values of -0.61 and -0.33 respectively.
“The relationship between Ethereum (ETH) and major indexes such as the Nasdaq 100 is more closely tied right now compared to Bitcoin (BTC), according to IntoTheBlock’s recent tweet.”
What About Bitcoin ETFs?
It’s surprising that the increasing popularity of Bitcoin (BTC) comes at a time when it has been granted approval for trading on US stock exchanges as spot ETFs, effective from January.
Approximately $12.5 billion in investments have flowed into the asset due to the event, opening up access to this asset through new investment channels that were formerly unreachable for numerous institutional funds.
Instead of Ethereum, the chances of getting a U.S. listing for an ETF approved in the near future are becoming increasingly slim. According to Bloomberg ETF analyst Eric Balchunas, there’s only a 25% chance of approval by May, and he’s unsure if the crypto industry will challenge regulators even if the application is denied.
According to Bitwise, a cryptocurrency fund manager who spoke to CryptoPotato, financial advisors view Bitcoin and Ethereum as serving distinct functions within an investment portfolio.
Bitwise analyst Juan Leon stated in November that it is useful for advisors to understand Bitcoin (BTC) as a type of investment akin to gold, while Ethereum (ETH) can be compared to a high-tech growth stock.
After receiving the approvals, Ethereum has been gradually losing value compared to Bitcoin. The ratio of Ethereum to Bitcoin has dropped from 0.06 on January 13 to 0.049 as of today.
Read More
- WLD PREDICTION. WLD cryptocurrency
- BTC EUR PREDICTION. BTC cryptocurrency
- ZBC/USD
- Top gainers and losers
- MEME PREDICTION. MEME cryptocurrency
- PRISMA PREDICTION. PRISMA cryptocurrency
- PRMX PREDICTION. PRMX cryptocurrency
- AGLD PREDICTION. AGLD cryptocurrency
- Brent Oil Forecast
- Bitcoin Likely to Drop After the Halving, JPMorgan Says
2024-04-17 22:11