Bitcoin and Ether correlation has been hovering around 90% for almost two years. Interestingly, the charts are not bullish for Ethereum suggesting there is no independent action for Ether.
Ethereum- Most Correlated Cryptocurrency in Q3
Source- Skew Markets
The third quarter saw Ethereum become the most correlated cryptocurrency in Q3. As a matter of fact, Bitcoin(BTC) and Ethereum (ETH) have registered a correlation coefficient of 0.81 over the third quarter of 2019. The latter is a measure to map how strong is the relationship between two cryptocurrencies. An analysis of the same gives an insight into how the coins behave when the market surges or falls.
Source- Binance Research
Interestingly, Ethereum registered the most significant correlation in the cryptocurrency market compared to other digital assets. Furthermore, programmable blockchains including Ethereum displayed a higher correlation as compared to other non-programmable assets. Also, Proof of Work (PoW) assets also exhibited more correlation with each other.
How Are Other Crypto Assets Related to Bitcoin?
Per Unfolded’s correlation Matrix, the correlation between Bitcoin and the top 10 cryptocurrencies is very high. Ethereum [ETH] is 85% correlated to Bitcoin while Bitcoin Cash [BCH] is 89.42%. Interestingly, the same trend can be seen for Litecoin, EOS, Binance Coin [BNB] and Bitcoin SV [BSV]. However, in the case of XRP, the correlation is very less.
Interestingly, the correlation between crypto-assets increased in Q3 2019. Additionally, Ethereum displayed the highest median correlation with all other crypto assets. While ETH shows a correlation, the same cannot be said when it comes to the case of Bitcoin. Per a recent study by a University of Texas, Professor Bitcoin’s astronomical surge in 2017 was possibly triggered by market whales.