14 Dec 2022
ETHBTC 30-day correlation near all-time highs
In general, the very strong correlation depicts an inactive market with no substantial altcoin rotation.
The 30-day correlation between ETH and BTC currently sits at 0.97. This is extremely high, and the rolling 30-day correlations between ETH and BTC have only been higher in three periods prior to this. First, from February 18 to March 31, 2019. This was a slow period in the market, as bitcoin reigned directionless at $4k throughout March, with ETH following BTC closely. Correlations firmed as BTC rallied from early April till the end of June. The second period of higher correlation than the current lasted for 9 days from March 24 to April 2, 2020, after the COVID meltdown. The third period occurred this year and lasted for two days, from May 8 to May 9.
In general, the very strong correlation depicts an inactive market with no substantial altcoin rotation. Additionally, it illuminates an apathetic behavior by traders, in which two of three previous events have eventually led to an upside price movement.