In the history of Bitcoin (BTC) and Ethereum (ETH), there may have been a first
Bitcoin’s (BTC) mobility today has also led to volatility in the cryptocurrency market peaking after a long time. The BTC price fell by close to 20% within a few hours. Although altcoins also followed BTC as usual, this time the decline was much different than the others. Ethereum (ETH), in particular, took a different stance from earlier declines.
ETH rises as BTC falls
Renowned economist Alex Krüger explained in a tweet why this decline is different from others. According to Krüger, for the first time in history, Bitcoin may have fallen by 10% in one day, while Ethereum may have risen by 20% and above. Describing the last 24 hours as “unbelievable,” Krüger may have expressed the thoughts of many cryptocurrency investors.
Looking at the Bitcoin and Ethereum correlation chart published by Coinmetrics, it seems that Krüger may have his share of merit. According to the BTC-ETH correlation chart, the connection between the two cryptocurrencies peaked on August 20, 2020 and rose above 0.88. After this date, the correlation, which has been constantly declining, took a hard hit on January 4 as s and fell to 0.75.
Expectations rising for Altcoin season
In previous periods, even when the price of Bitcoin fell slightly, the price of ETH was upside down. Now that this situation is starting to change, altcoin investors are raising their hopes. The BTC market dominance rate has changed dramatically in the last 24 hours. The decline in bitcoin’s market dominance from 73 levels to 69 levels is seen as another positive news for altcoin investors.
At the moment when the price of Ether begins to push $ 1,200, such a drop may cause altcoin investors to wait a little longer for the rally in question.