The once closely entwined price movements of Bitcoin and Ethereum have begun to diverge. Data from Kaiko indicates that the 60-day correlation between the two digital currency giants fell to a multiyear low of 75% in November.
Historically, the correlation between these two cryptocurrencies has been high.
Bitcoin has been experiencing a surge, with its price reaching above $41,589.73 and achieving a 12.90% increase over the past week. Ethereum, on the other hand, appears to be lagging.
Despite its respectable gains, Ethereum’s price increase stands at 10.09% for the same period, trailing behind Bitcoin’s more robust performance.
The rally behind Bitcoin’s impressive performance has been partly attributed to speculation around interest rate cuts, which has fueled the most recent rally.
This widespread market optimism suggests that investors are gaining confidence in the face of regulatory clarity and the resolution of high-profile criminal cases within the crypto space.
Bitcoin’s growing dominance
Bitcoin’s market dominance has reached a significant milestone, surpassing the 51% mark. This means that over half of the total market capitalization in the cryptocurrency space is now attributable to Bitcoin alone.
Bitcoin and Ethereum are valued at $814 billion and $267 billion, respectively, according to CoinGecko data.
Ethereum’s market dominance often sees a notable increase during bull markets due to growing speculation and appetite for riskier cryptocurrencies.