It is no secret that Ethereum’s performance has been tamed compared to Bitcoin since the start of this cycle. However, this trend became the most apparent at the start of the year when ETH’s price dropped to the $ 3,000 mark while BTC continued to exceed $ 100,000.
When the price of Bitcoin finally lost the level of $ 100,000 in the first quarter, Ethereum’s value had already fallen nearly $ 2,000. While the first cryptocurrency has reached a new summit of all time in recent days, the “King of Altcoins” faces significant resistance around $ 2,800.
Will the divergence lead to a reassessment of investment strategies?
The price growth rate of the two assets in recent weeks and months gives an overview of the drop in the relationship between Bitcoin and Ethereum. In a recent post Quicktake on the cryptocurrency platform, the Carmelo Aleman chain analyst shared that a decoupling occurred between the two largest cryptocurrencies in the world.
Aleman defined the correlation in his article:
Correlation is a statistical measure of the relationship between two variables. In the financial analysis, it helps to determine whether two assets tend to move in the same direction (positive correlation), in opposite directions (negative correlation), or independently (near zero).
Historically, Bitcoin and Ethereum have always maintained a strong positive correlation – generally greater than 0.7. This long -term trend explains why most BTC movements were often reflected by the price of Ethereum in recent years.
Source: CryptoQuant
Aleman, however, noted that a decoupling has occurred between the two best assets since the beginning of this year. Data from the BTC-ALTS correlation matrix (annual) show that the correlation was 0.63 on January 1, 2025 before falling to 0.05 on May 22, 2025.
Source: CryptoQuant
From an investment point of view, this major divergence breaks one of the most coherent models on the cryptography market, leading to a re-evaluation of strategies based on Bitcoin-Ehereum correlation. “It also adds uncertainty for investors, who can no longer expect ETH to follow the BTC,” added Aleman.
The chain analyst said:
Portfolio models, risk strategies and return forecasts must now adapt. This can also reflect the way Ethereum has become motivated by its own internal factors – such as upgrades, regulations or protocol scrolling – indicating increasing independence.
Aleman also mentioned that this change means that the ether and related assets run an increased risk of missing the bull markets. This effect is widely observed in 2025 where the price of Bitcoin has climbed, while the value of ETH and other altcoins linked to Ethereum has often blocked or decreased.
Bitcoin and Ethereum Price
To date, Bitcoin and Ethereum are estimated at around $ 107,450 and $ 2,507, respectively. While the price of the BTC climbed more than 5% last week, the value of the ETH is up less than half of it during the same period.
The price of BTC against ETH on the daily timeframe | Source: BTCETH chart on TradingView
Istock star image, tradingview graphic
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