The 60-day rolling correlation between the price of Bitcoin and Ethereum has fallen below its average of 0.7. This follows from the new report Kaiko experts.
The last time the correlation figure fell below this level was in early 2021. It indicates that asset prices are not moving in unison as they did a few years ago.
The correlation between the price of Bitcoin and Ethereum has fallen to its 2021 low. Source: Kaiko.
According to analysts, the growth of the first cryptocurrency was facilitated by the news background around the upcoming launch of spot Bitcoin ETFs in the United States. After the start of trading, the rate rose to $48,500. A week later, the asset surpassed silver and became the second largest commodity ETF.
Experts pointed to possible volatility due to the potential launch of spot Ethereum ETFs in the US. They called them “the most powerful tool capable of influencing the price of Ethereum – even compared to L2 protocols, liquid staking and the Dencun hard fork,” which is expected to be released in the first quarter of 2024.
Last week, daily Ethereum trading volumes reached their highest level since the collapse of crypto exchange FTX, according to Kaiko. On January 10, 11 and 12, this figure was significantly higher than on any other day in 2023.
From January 10 to January 12, 2024, Ethereum trading volumes showed significant growth. Source: Kaiko
Meanwhile, the report suggests that “aggressive price speculation” around the possible approval of an Ethereum ETF has yet to begin. Despite the gradual increase in trading volume, the derivatives market lacks clear signs that traders are preparing for a rally, according to Kaiko.
Analysts warned that the issue of approval of spot Ethereum ETFs in the United States remains open. First of all, this is explained by the unclear position of the US regulator regarding this asset.
On January 19, the US Securities and Exchange Commission (SEC) delayed the decision date on Fidelity's spot Ethereum ETF. The new review deadline is set for March 5, 2024.
Source: Cryptocurrency
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