November 4, 2019 at 12:01 pm UTC · 2 min read
Since the end of the 2017 bull market during which the Bitcoin price achieved $20,000, most cryptocurrencies have fallen by 80 to 95 percent against the U.S. dollar.
The high level of correlation between Bitcoin and Ethereum indicates that most major cryptocurrencies have been following the price trend of the dominant cryptocurrency.
Why is it a sign of a bearish trend for bitcoin, Ethereum, and crypto in general?
In amidst a bull market or an extended rally, cryptocurrencies tend to see independent movements to either the upside or the downside.
Early on in 2017, for instance, the correlation between Bitcoin and Ethereum was hovering in the range between -50 percent and 50 percent, as both cryptocurrencies moved purely based on the demand from their respective markets.
However, as cryptocurrencies moved into the bear market territory, the entire market started to fall in tandem, forcing most cryptocurrencies to move up and down in a correlated manner.
When the bitcoin price saw a spike to $14,000 in June, the Ethereum price also saw its yearly high at $366.
Depending on the interpretation of various data, it is arguable whether the cryptocurrency market is currently in a bear market or a bull market.
Engagement wise, considering data from social media platforms and search engines surrounding crypto-related keywords,