Even though Bitcoin (BTC) and Ethereum (ETH) are still struggling to regain their all-time highs, there now appears to be a clear link between the two assets, as a fresh report shows data.
Moreover, according to the latest report from Matrixport, Ethereum is currently showing greater price volatility compared to Bitcoin in recent weeks.
Ethereum Volatility Surpasses Bitcoin
Volatility measures the fluctuations in an asset’s price over time, with higher volatility indicating more significant price changes. According to data from Matrixport, the 30-day realized volatility spread between ETH and Bitcoin typically ranges from 1.0 to 1.5.
#Matrixport Today-August 13: #EthereumVariability exceeds #Bitcoin‘S#Cryptoassets #cryptorynek #BTC #ETH photo:twitter.com/QoKsuLUrAH
— Matrixport Official English (the only official X) (@Matrixport_EN) August 13, 2024
This means that Ethereum’s price movements were up to 50% more unpredictable than Bitcoin’s, which may suggest that Ethereum may be a riskier market for investors.
This increased volatility is evident in the way Ethereum responds to market stimuli. In recent weeks, Ethereum has shown volatility levels higher than Bitcoin.
This distinction has become especially evident since the recent bull run, during which the Ethereum price experienced more drastic changes.
These rapid changes could significantly impact investment strategies, as Ethereum’s larger peaks and troughs present different risk-reward scenarios compared to the relatively more stable Bitcoin. Matrixport noted in the report:
Given Ethereum’s destitute performance since the beginning of this bull market, this higher volatility has made it a less attractive asset. However, as long as the volatility coefficient remains in this range, buying Ethereum volatility at the lower end could present an attractive opportunity.
Bitcoin and Ethereum Performance
Meanwhile, over the course of the week, both assets seemed to almost mirror each other in terms of price behavior, with BTC up 7.5% and ETH up 7.9%.
However, there has been a noticeable difference in performance over the past 24 hours. Bitcoin has risen 2.8% during this period, reclaiming its $61,000 price peak. On the other hand, Ethereum has only risen 1.2%, reclaiming its price peak above $2,700.
Bitcoin Technical Outlook can be seen that the asset has already confirmed the setup for a potential rebound to higher levels.
Bitcoin successfully retested the lower part of the channel as support (green circle), confirming the channel’s complete recovery$BTC #Crypto #Bitcoin https://t.co/CKXDAAOA9v photo:twitter.com/ZCTQtKw580
— Rekt Capital (@rektcapital) August 13, 2024
Meanwhile, the technical outlook suggests that ETH may continue to stall. The cryptocurrency analysis platform known as More Crypto Online on X excellent:
Bitcoin is clearly leading today. Ethereum is still rangebound but could try to break out higher.
Featured image created with DALL-E, chart from TradingView
