Since December, amid the beginning of the second lockdown, a second wave of raging bulls emerged, which culminated with the GameStop short squeeze. Ever since, the market is still in bullish mood, but the rage waned a little bit. This is the same when it comes to Crypto. As the comparison with SPX500 in the graph shows, there's a high degree of correlation, higher than was there before. That's because the dynamics driving the buying powers are the same, namely the surge of retail investment and the decreased spending. Now, if we compare ETH and BTC with SPX500, we would see that the rift happened in the past month only for BTC, while ETH was able to catch up with the market. This is because of the saturation of BTC around the 60K line (as I expected a couple of months ago) and the shift of many investors towards ETH and the alt coins. Putting this in context, one would stop wondering about ETH and start wondering about BTC. If ETH is following the market, then it's not defying gravity after all, since the market is the gravity inducer and not the ground.
ETH price will fall soon with the imminent market correction, and BTC will catch up a little bit. They would meet somewhere in the middle, for now, until ETH soars again -- that is as long as the market is soaring.
P.S. The graph is comparing prices with different scales. While this doesn't indicate the range of volatility, it is a very good indicator of the price tendencies and their correlations.
ETH price will fall soon with the imminent market correction, and BTC will catch up a little bit. They would meet somewhere in the middle, for now, until ETH soars again -- that is as long as the market is soaring.
P.S. The graph is comparing prices with different scales. While this doesn't indicate the range of volatility, it is a very good indicator of the price tendencies and their correlations.
