In the constantly changing trend of cryptocurrency landscape, Ethereum is facing challenges, while Bitcoin is experiencing a recovery.The correlation between Ethereum and Bitcoin hit an annual low of 0
In the constantly changing trend of cryptocurrency landscape, Ethereum is facing challenges, while Bitcoin is experiencing a recovery.
- The correlation between Ethereum and Bitcoin hit an annual low of 0.61.
- The sluggish spot trading volume of Ethereum and the weakening interest in whales are in stark contrast to the recovery of Bitcoin.
In the constantly fluctuating cryptocurrency landscape, in stark contrast to Bitcoin's recent recovery, Ethereum [ETH] seems to be facing ongoing challenges.
Recent data shows that the correlation coefficient between Bitcoin and Ethereum is 0.61, which is one of the lowest levels this year. This indicates that Ethereum has not closely reflected the recent positive price trends of Bitcoin.
A key factor contributing to Ethereum's sluggish performance is the ongoing bear market situation. According to Kaiko's data, historically, during bear markets, traders often favored Bitcoin.
In addition, Ethereum's spot trading volume has also shown a continuous lack of momentum in the past two months, with occasional peaks, barely breaking the $2 billion mark.
Another important trend is the weakening interest of cryptocurrency whales in Ethereum. According to Glassnode's data, the number of addresses holding 10000 or more Ethereum coins has significantly decreased, reaching the lowest level in two years, at only 1074.
Traders and ETFs
In addition, since early September, the holdings in the Ethereum perpetual contract market have surged. However, the financing interest rate remains essentially neutral to negative. This phenomenon reflects the ambiguity of the market, leading to the widespread uncertainty in Ethereum.
The latest developments surrounding Ethereum based exchange traded funds (ETFs) have also exacerbated this situation. Six futures based Ethereum ETFs have made their debut in the US market, aiming to provide investors with investment opportunities in cryptocurrencies.
However, unlike Bitcoin's successful ETFProShares Bitcoin strategy (BITO), the first day trading volume of this ETF exceeded $1 billion, making it difficult for Ethereum ETFs to attract meaningful trading volume.
VanEck's EFUT and ProSharesEETH, the two largest ETFs, had an average daily trading volume of only $500000 in the first week of trading.
Regardless of reality or not, this is the ETH market value calculated in BTC
There are many factors contributing to this weak response, including the current rise in risk-free interest rates and the market environment of macroeconomic uncertainty.
As of the time of writing, ETH's trading price was $1581. In the past month, both MVRV ratio and price have decreased. However, the indicator of transaction frequency (referred to as speed) slightly increased during the same period.
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