ETH - Better Buy: Ethereum or Bitcoin?
2023-04-28 07:20:00 ET
Despite a recent pullback in the crypto market, both Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) continue to be two of the best-performing cryptos. Bitcoin is up about 80% for the year, while Ethereum is up about 60%. On the surface, it would appear that Bitcoin is clearly the superior investment in 2023.
However, two market indicators paint a different picture of what's happening in the crypto market right now. Here's a closer look at how Ethereum stacks up with Bitcoin on a relative basis.
Correlations are incredibly important in the crypto markets. For example, any time the correlation of Bitcoin with gold tightens, it usually signals that investors are about to pile into Bitcoin as a safe-haven investment. Investors also use the correlation of Bitcoin with broad market indexes such as the S&P 500 or the Nasdaq 100 to gauge how the market currently views crypto as a risky asset. The tighter the correlation between Bitcoin and the Nasdaq , the thinking goes, the more that investors are viewing Bitcoin as just a slightly riskier tech stock.
For further details see:
Better Buy: Ethereum or Bitcoin?