Kaiko has reported a significant shift in the BTC-ETH correlation, which has fallen below the long-term average of 0.71 for the first time since 2021. While Ethereum (ETH) has seen an increase in trading volume, questions arise about the lack of clear indicators in derivative markets and whether ETH can emulate the catalytic effect of ETFs on Bitcoin (BTC).
The BTC-ETH correlation, a key measure of the relationship between Bitcoin and Ethereum, has dropped below the historical average of 0.71. This deviation from the norm since 2021 raises questions about the evolving dynamics between the two leading cryptocurrencies.
Investors and analysts are closely monitoring this change, considering its potential impact on the broader crypto market. Concurrently, Ethereum’s trading volume has witnessed a notable increase, indicating heightened activity and interest in the ETH market.
The increase in Ethereum’s trading volume has led to speculation about potential market movements and investor sentiment surrounding ETH. However, the focus is on derivative markets, where the anticipated signs for a rally by investors positioning themselves have not yet materialized.
ETFs have played a significant role in shaping Bitcoin’s narrative and market dynamics, influencing price movements and investor perceptions. Now, the question is whether Ethereum can replicate a similar narrative and garner the same level of interest and impact from ETFs as Bitcoin did.