BTC-ETH Correlation Weakens, Volatility and Volume Decline in Bitcoin Trading
In the latest episode of Crypto Daily TV, it was reported that the correlation between Bitcoin (BTC) and Ethereum (ETH) has weakened.
Additionally, both the volatility and trading volume in Bitcoin experienced a decline.
These developments signify potential changes in the cryptocurrency market.
During the previous session, Bitcoin saw a 0.8% drop against the Dollar, with the Rate of Change (ROC) indicating a negative signal.
On the other hand, the Ethereum-Dollar pair underwent a minor upward correction, rising by 0.1%.
The Ultimate Oscillator gave a positive signal for Ethereum.
Ripple, another prominent cryptocurrency, witnessed a 0.6% decrease against the Dollar in the last session.
However, the Stochastic-RSI provided a positive signal for Ripple.
Meanwhile, Litecoin soared by 2.7% in the same session, with the Relative Strength Index (RSI) giving a positive signal for Litecoin.
Bitcoin and Ethereum, being the two largest cryptocurrencies based on market value, have historically moved in sync throughout much of 2022.
However, this positive relationship has weakened over the course of this year, indicating an imminent regime change in the market.
Recent data shows that the 30-day rolling correlation between price changes in Bitcoin and Ethereum is 77%, the lowest it has been since 2021.
This decline in correlation suggests a shift in the dynamics of the cryptocurrency market.
In other news, Sam Altman, the CEO of OpenAI, is reportedly engaged in “advanced talks” to secure $100 million in funding for Worldcoin.
Worldcoin is a project that aims to establish a globally distributed and collectively owned cryptocurrency.
Furthermore, trading ranges within Bitcoin markets continue to narrow, signifying ongoing uncertainty surrounding the largest cryptocurrency by market capitalization.
Simultaneously, Bitcoin’s share of the overall crypto market continues to rise, indicating that it remains the preferred safe haven digital asset for investors.
As the crypto landscape evolves, the weakening correlation between Bitcoin and Ethereum, along with the various developments mentioned above, highlight the changing dynamics and potential opportunities in the cryptocurrency market.
