The correlation between bitcoin and ether prices dropped below 80% for the first time since November 2021, indicating a significant change in the correlation between bitcoin and ether. cryptocurrencies the two largest currencies
The 30-day correlation between bitcoin and ether has dropped to about 78% this week, according to the data provider. Kaiko Correlation measures how close the prices of two assets move together. by when the relationship is low It means that their prices move in different directions more often.
or in other words, The falling correlation means that the prices of BTC and ETH are not moving together as they used to.
last month Coinbase has analyzed the correlation between BTC returns and ETH and concluded that It has been down since mid to late March as bitcoin began to outperform other cryptocurrencies amid turmoil in the US banking sector.
And such a downward correlation became more apparent after the Shanghai (Shapella) fork, reminiscent of a similar trend observed in September 2022 during the Merge.
in theory The reduced correlation between the two assets helps in diversification for the inclusion of both assets in a portfolio.
refer : LINK
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