Many crypto traders invested their hard-earned savings in Bitcoin just to behave that way. † .an alto? A report from Arcane Research took a closer look at this phenomenon to better understand whether Bitcoin, Ethereum and even some other assets give each other enough space.

Don’t be like your sister!

In 2017, while some ETH/altcoins correlation could be observed, altcoins still followed their own path. However, 2018 showed that Ether and altcoins fell in formation and registered a higher correlation. The Arcane Research report explained,

“The 90-day correlations in the crypto market are approaching the highs of the bear market of 2018 and 2019. This paints a picture of a general risk-averse sentiment in the market.”

However, the all-time high in terms of correlation remains 0.95 as of May 2020. The market has not reached this stage yet.

However, it is not all volatility and confusion. Arcane Research noted,

“Interestingly, previous periods of high correlation were caused by sudden sharp sell-offs, while the recent trend has shown steady growth.”

Source: Arcane Research

So, what does the data say for investors? For starters, investors who have bought altcoins to hedge against Bitcoin-related risks can take a second look at their portfolio to make sure it’s still diverse enough. In addition, investors who have already embarked on this trend may instead resort to risk-averse strategies for the foreseeable future.

This development comes as pundits and analysts debated whether or not Bitcoin is aligning or breaking away from the S&P500 a little too closely. Add the FUD surrounding the Russia-Ukraine war to the mix, and you can see why conflicting statements and an aversion to risk seem to hang heavily in the air.

Remind me what’s next?

Well, trading is only half the game and it’s important to remember those who mine the king coin even if the price drops and now stays closer to more traditional assets.

The Arcane Research report states:

“Core Scientific is the largest publicly traded bitcoin miner in terms of hashrate, with 8.2 EH/s making up 4.1% of Bitcoin’s total hashrate…”

In second and third place were Riot and Marathon respectively. Since much of the business of these companies takes place in the US and Canada, the report suggested that the global hashrate could shift in favor of North America in the near future.

This post BTC-ETH correlation is approaching ATH; this is what could be next

was published first on


Write A Comment