Bitcoin has recently shown a notable correlation with stock equities, while Ethereum appears to be charting a more independent path. The institutional DeFi solutions provider Sentora highlighted this trend in a post, discussing the Correlation Matrix between Bitcoin, Ethereum, and traditional markets. This matrix indicates how closely the prices of two assets are tied together, with a positive value suggesting they move in the same direction and a negative value implying they move in opposite directions. A value of zero indicates no correlation.
According to Sentora’s analysis, Bitcoin exhibits a strong positive correlation with the DAX index, with a Correlation Matrix value of 0.85. This indicates that Bitcoin’s price movements are closely aligned with the DAX. In contrast, Ethereum shows a weaker correlation with the DAX, with a value of 0.46. Bitcoin also demonstrates notable correlations with other stock market indices, such as the Russell 2000, S&P 500, and Dow Jones Industrial Average, with values of 0.7, 0.68, and 0.69, respectively. Ethereum, however, is almost fully independent from these indices, with values close to zero.
For the US Dollar Index and VIX Index, Bitcoin’s Correlation Matrix values are in the negative zone, indicating that it has been moving against these indices. Sentora notes that if geopolitical and macro tensions cause the dollar to weaken, it could create favorable conditions for Bitcoin to rise. Ethereum, on the other hand, shows little correlation with the US Dollar Index and VIX Index, further emphasizing its independent trajectory.
Bitcoin’s price has surged to $109,400, marking another bullish push. However, it remains uncertain whether this trend will continue or follow the pattern of the previous weekend’s movements. The analysis underscores the divergent paths of Bitcoin and Ethereum, with Bitcoin closely following stock market trends and Ethereum forging its own path.
