Although Bitcoin (BTC) and Ethereum (ETH) are still struggling to regain their all-time highs, there seems to be a distinct fact between the two assets now, as the latest report shows. data.
In particular, according to Matrixport’s recent report, Ethereum is now showing larger price fluctuations compared to Bitcoin in recent weeks.
Ethereum’s Volatility Exceeds Bitcoin’s
Volatility measures the price changes of an asset over time, with higher volatility indicating larger price changes. According to data from Matrixport, the 30-day realized volatility spread between ETH and Bitcoin typically ranges from 1.0 to 1.5.
#Matrixport
Today-August 13: #EthereumThe volatility exceeds #Bitcoin‘s#Cryptoassets #cryptomarket #BTC #ETH pic.twitter.com/QoKsuLUrAH
— Matrixport Official English (the only official X) (@Matrixport_EN) August 13, 2024
Today-August 13: This means that Ethereum’s price movements have been up to 50% more erratic than Bitcoin’s, suggesting that Ethereum may offer a riskier market for investors.
This increased volatility is reflected in how Ethereum reacts to market stimuli. In recent weeks, Ethereum has displayed higher levels of volatility than Bitcoin.
This distinction has become particularly notable since the start of the last bull market, with Ethereum’s price experiencing more drastic changes.
These rapid changes can have a significant impact on investment strategies, as Ethereum’s larger peaks and troughs present different risk-reward scenarios compared to the relatively more stable Bitcoin. Matrixport noted in the report:
Due to Ethereum’s underperformance since the start of this bull market, this higher volatility has made it a less attractive asset. However, as long as the volatility ratio remains within this range, buying Ethereum’s volatility at the lower end could present an attractive opportunity.
Performance of Bitcoin and Ethereum
Meanwhile, over the course of the week, the two assets seem to almost mirror each other in terms of price performance, with BTC increasing by 7.5% and ETH by 7.9%.
However, a notable difference was seen in the performance of the last 24 hours. During this period, Bitcoin surged by 2.8% to reclaim its price mark of $61,000. In contrast, Ethereum rose by only 1.2%, reclaiming its price mark above $2,700.
Technical outlook on Bitcoin shows that the asset has now validated the configuration of a potential rebound towards higher levels.
Bitcoin successfully retested the channel bottom as support (green circle) to confirm an overall channel recapture$BTC #Crypto #Bitcoin pic.twitter.com/ZCTQtKw580
– Rekt Capital (@rektcapital) August 13, 2024
Meanwhile, the technical outlook suggests that ETH could still be stuck. Crypto analytics platform known as More Crypto Online on X noted:
Clearly, Bitcoin is leading today. Ethereum is still stuck in the range but could attempt a breakout higher from there.
Featured image created with DALL-E, chart by TradingView
