TechFlow news, according to data from Kaiko, the 60-day rolling correlation between Bitcoin and Ethereum has dropped below 70%, the lowest level since 2021.
As reported by The Block, this shift occurred after the U.S. launched spot Bitcoin ETFs, alongside market expectations of a potential approval for spot Ethereum ETFs. In asset correlation metrics, 1 (or 100%) indicates perfect positive correlation, meaning asset prices move in the same direction by the same magnitude. Conversely, 0 (or 0%) indicates no correlation, while -1 (or -100%) indicates perfect negative correlation, meaning asset prices move in opposite directions by the same magnitude.
Therefore, the decline in price correlation between Bitcoin and Ethereum to below 70% means that the price movements of these two major cryptocurrencies are no longer as synchronized as they were in previous years.
