The high correlation mode between Bitcoin and Ethereum is maintained
According to the experts of the cryptocurrency data provider Skew, BTC and ETH have a strong correlation since 2018, despite the appearance of a new bullish movement last year.
Crypto Market Leaders Believe in BTC
Cryptocurrency experts Skew said that the mode of high correlation between BTC and ETH began in 2018 and continues to this day, despite the beginning of a new apcycle last year.
Messari crypto researcher Mira Cristianto recently confirmed this view that the ratio between BTC and other crypto assets, such as Ethereum and Litecoin, exceeds 60%.
For example, the recent market crash caused Bitcoin to lose more than half of its price from a high of $64.8 thousand, to a low of $30 thousand. On the other hand, Ethereum lost half of its market capitalization after hitting an all-time high (ATH) of $500 billion, while its price fell to a low of $2,000 from a high of $4,350.
According to CoinMarketRate, at the time of writing, Bitcoin was trading at $35,640, while Ethereum was trading at $2,453.
As such, some analysts say it remains to be seen whether the two leading cryptocurrencies will regain momentum to continue their impressive bullish gains in the rest of the year. But not everyone doubts the leading cryptocurrencies. Crypto Space Darling Katie Wood Reassures Crypto Users By Saying Bitcoin Is Unstoppable
Investment star Katie Wood has assured investors that no one can make the BTC disappear.
In fact, the founder and CEO of Ark Invest has stated that it will not be possible to disable Bitcoin, and that she even expects regulators to become more friendly to cryptocurrencies over time for fear of missing out on the opportunities provided by this innovation.
Wood spoke at the Consensus 2021 conference yesterday and spoke in particular about the concerns coming from China and the objections raised by Elon Musk regarding Bitcoin mining and the associated environmental risks.
Katie Wood, Bitcoin and the Environment
According to the founder of Arc, the attention to environmental factors probably led to the suspension of the purchase of BTC by institutional investors, but she still expects that in the long term, the value of the king of the crypto space will only grow. It is enough to follow the historical dynamics of the value of the BTC, which you can do here, to understand that the BTC does not intend to stop.
The fact is that the environmental risks associated with a large consumption of energy produced from unstable sources can continue to scare off traditional investors, in particular, both those who buy BTC as a means of saving, and those who are guided solely by speculative interests.
On the other hand, the Arc has already suggested in the past that this issue could even accelerate the transition to renewable energy, so we are probably in a long transition phase during which the foundations for a more sustainable future could be laid, not just as far as Bitcoin is concerned.
In recent days, the price of BTC continues to fluctuate from $36,000 to $40,000. This highly volatile lateralization has been going on for almost ten days, since May 19, when the Bitcoin price hit its lowest level in months, just above $30,000.
Given that the rise in the price of BTC from $10,000 to almost $65,000 in just four months was supported by large institutional investors, the scenario described by Wood would be a good explanation for why the price now seems so low, and continues to go sideways.