- Bitcoin and Ethereum 30-day rolling correlation declined to 78%, for the first time in 18 months.
- Bitcoin is outperforming other cryptocurrencies amidst the banking turmoil and changing macroeconomic outlook.
- Ether and other assets in the top 30 are struggling to recover from their recent pullback.
Based on data from crypto intelligence tracker Kaiko data, the 30-day correlation between the two largest assets by market capitalization has declined below 80% for the first time in a year and half.
Also read: Ethereum blockchain hits roadblock in finalizing blocks, ETH price continues recovery
Bitcoin and Ether correlation nosedives, what’s next
Typically, when the correlation between Bitcoin and Ethereum drops, the assets’ prices do not react in a similar manner to macroeconomic conditions and other catalysts. While Bitcoin price has fallen out of correlation with US equities, climbing higher during the banking crisis and increasing regulatory scrutiny.
Bitcoin correlation with Ether
As the 30-day rolling correlation between Bitcoin and Ethereum declined to 78%, altcoin lagged behind in its recovery.
Crypto assets in the top 30 are struggling to recover from their recent pullback while Bitcoin attempts to make a comeback above $27,000.
Cryptocurrencies in the top 10 by market capitalization
Ethereum ecosystem tokens and Layer 2 assets are correlated with ETH. With Ethereum’s declining correlation with Bitcoin, ETH and ecosystem tokens could see a drop in volatility response to macro market-moving events.
Since the two crypto assets’ correlation dropped for the first time since November 2021, it is a significant event and experts are closely watching prices and on-chain activity for signs of recovery.
Bitcoin price wiped out its US CPI-induced gains, while Ethereum price noted a modest 2.5% climb since Friday. Ether and its ecosystem tokens are poised for recovery with the rising ETH deposits in the Shanghai contract.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
![VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoins-33758372_XtraSmall.jpg)
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
![Ethereum Classic price sets for a rally following retest of key support](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/EthereumClassic/ethereumclassic_XtraSmall.jpg)
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
![Celebrity meme coins lose their shine](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/crypto_matrix-637516561995093295_XtraSmall.jpg)
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
![Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit](https://editorial.fxstreet.com/images/Resources/CryptoWorldSEO3_XtraSmall.jpg)
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
![Bitcoin: Will BTC manage to recover from recent market turmoil?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_closer_XtraSmall.jpg)
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.