Ethereum’s price performance exceeds Bitcoin’s, and reason is simple
According to data shared by macroeconomist Alex krugerBitcoin became a macro asset not long ago, and crypto traders can use it to trade Ethereum, which moves with more volatility than BTC.
To show and explain his hypothesis, Kruger shared a chart that visualizes the movement of the Nasdaq index against ETHBTC. As the chart suggests, the two assets have been moving “hand in hand.”
Economists also suggest that Ethereum has a higher beta of BTC, so the asset shows similar momentum on the market but with more volatility. During a bull market, investing in ETH instead of BTC is more beneficial as the former shows higher returns than digital gold.
Obviously, high volatility also piles more risks on investors’ shoulders, especially when the market enters a correction. But despite showing more volatility in a shorter timeframe, the comparison between the two assets shows that both Ethereum and Bitcoin have lost around 65% from their values since November.
If we compare the performance of both assets since mid-July, we will see that Ethereum has outperformed by gaining over 60% of its value over the past few weeks, while Bitcoin consolidated marginally with a 25% price increase. Happening.
This particular bear market shows crypto traders something they have not seen yet as Ethereum’s performance is greatly beating Bitcoin’s, with the ETH/BTC pair showing a 145% increase in the last few weeks.
The main reason behind a short-term rally on the second-largest cryptocurrency on the market is tied to the upcoming release of a fundamental merge update, which U.Today covered in one of its most recent guides.
